I don't think a COC return works well for comparison and it flat-out sucks if you're forcing value increases or are investing to try to improve the terminal cash flow.  

That isn't an apples to apples comparison.

LTV is "loan to value" which is a ratio referring to the financed portion in comparison to the property's worth.Again, just a friendly FYI.

It doesn't cost very much in comparison to the deal you're trying to get. 

I think what I'll do though is write out the comparison of the two, without those factors, and see how they line up. 

This is especially true if you have certain deductions that are higher than average.If everything looks fairly average in comparison to historical numbers then you are fine.

This could give her a starting point for comparison.3) Make sure she realizes she would have to furnish the unit.

You need to go work for a developer first.That's how I learned that business.I wasn't an employee but a friend had a old coin laundry built in the 60's and a developer was approaching them to sell for redevelopment.My friend brought me in (as an agent) to help negotiate with the developer.The developer then brought me on to help with assembling the other 20 parcels on 25 acres for a new mixed-use retail development as they were impressed with my negotiating.Over the next 2 to 3 years a learned a lot about development.I was mainly on the front end doing land assemblage however I was included in many meetings and learned a lot.How long the development takes is about funding,structure,politics,timing,and size.The bigger the size the more it impacts an area and the more regulations and controls they put on it.The developer can typically partner with the land owner or set up an equity share structure on the back end.The developer typically takes small consulting fees during various stages of putting the land together,meetings,first phase of construction,etc. until completion.They make the most on the back end when they have performed.A project can have more than one developer or a single company it just varies.I haven't done any land development in years.Most developers are taking cash and buying reposition plays in good areas for less than build cost where they re-skim the outside.New development is still ongoing but it's in really great areas that are a safe play.From what you have stated you are not ready to take on this task.The money you think you will be getting will pale in comparison to the lawsuits that hit you when you screw up and lose people's money from inexperience.Don't think a disclaimer will protect you as they will come after you anyways.Why don't you list the land and market it to developers and take your commission that way and let the developer take the risk??

If you're not familiar as to setting up a seller financed note, I strongly suggest you sell and invest in what you know.Seller financing puts your equity to work at a higher rate usually than what you would get if you were to invest the cash after taxes, that is not to say the note is a better investment than buying discounted notes.There is no RE deal that pulls the ROI that a discounted note can pull when it is refinanced shortly afterwards at the UPB or even below, no comparison, not a guru ploy on the face of the earth dealing in dirt that can compete with notes......that's why I went to more notes, LOL.But, reality, anytime there are greater potential profits, the greater the competition, the greater the knowledge required and the higher the barrier to entry in that field.

I'm sure there are locations that work as John Fedro described with additional money due over the rental comparison, but I try to stay about $50-$100 less than a comparable rental for my prices to make it a no brainer decision for a buyer to want to own their own place.