Please keep in mind when you do identify a lender that will take on vacant land- they will price the deal at a higher interest rate and will keep a low LTV to minimize their risk. 

Let's put expenses at 15% since it's a new build, and you're looking at a 10.2 cap rate.

Your rent rate is currently $500 below market, but I am willing to keep it below market as an incentive to stay.Your new rent rate will be $1,650 effective June 1st, and I require you to take responsibility for the heat.

I understand some of the benefits of an ARM especially if it gives you a lower interest rate and you don't plan on holding it for longer than 5 years or however long the initial rate is.

My guess is that a lot of these sellers will either exit their current loan or be open to subto as soon as the rates ease up. 

6.2% in "loan costs" and a 9.875% rate?

Considering the high interest rate, the projects and COC return seems too good to be true.

If it's the former, then I assume the purchase price reflects a discount great enough to overcome the headache of getting retroactive permits.  

A wrap-around agreement is a type of secondary mortgage financing and involves the buyer paying the seller directly for a residential property — often at a higher interest rate than the original mortgage.

I am using a FHA loan on my primary residence and don't want to refinance because we have a great interests rate.