WARNING, you NEED to do a title search first to make sure there isnt a 100k mortgage luring in the background, and you NEED to get them to move out BEFORE you pay any of their debts, or you might learn a painful lesson in human nature. 

Your intent was to hold the lot for productive use with a rental on it. 

Products - and your rental is a product - are priced based on all kinds of factors, including scarcity, business objectives, long-term strategies, etc.

@Eric TilsonDepends mostly on the loan products. 

If it’s like a MN farm it will be a tiny percent if it’s only housing or a section (640 acres) but a much larger percent if it’s housing plus grain or machinery storage on a quarter (160 acres) usually 3-10 acres can be included with the buildings if it isn’t production land. 

A friend of mine has 20 door at good cash flow from each and now his banker calls HIM with deals they've found complete with a loan product ready to go. 

With such a head wind coming from getting a commercial loan you may want to look at non-qualified mortgage products like debt-service-coverage-ratio loans or possibly a HELOC.

(I.e. don't try to use the hammer to drive screws and paint walls no matter how good you've gotten with it, it simply won't lead to a good end product.)ThanksAndrew

My background in interior design combined with my knowledge and experience in the real estate industry makes flipping homes a natural fit.

@Philip L.Katie Haller with Simplified insurance does mine and most of my clients and everyone likes her and her product.