From reading it looks like I can use the FMV at the time of conversion OR the purchase price plus the cost of improvements.  

The conversation on Kansas City is accurate!  

I am here to pay it forward so reach out if there is some info or maybe connections you may be looking for that may move you along faster.My first property I bought was 10 acres with power and no water, bought it for 30k sold it for 50k, I was hooked after that, just kept repeating the process. had a good mentor at the beginning.Good luck here hope to see you around!

What is the downside to a conversion vs. true build? 

The issue now seems assembling my power team. 

If the answer is no then you have to have an honest conversation with them "hey, I want to help you, but this is not an attractive deal that makes any sense to me - and that if I do this there is a high risk that the deal will not work and we're going to ruin our relationship."  

Also, try to get to know the area as best you can - it makes a big difference when looking at properties when you are used to the home values in the area  - Another key piece of advice that wish I had when I first started out was to start networking with other investors as soon as possible - not just online - but in real life - sit down and have lunch - maybe offer to take them out for coffee and pick their brain - you would be surprised how much you can pick up on in a casual conversation with someone who does this for a living  - the insight simply unbeatable.

This is what we have decided for the scope of work on the rehab:Professional mold remediation with basement clean-up ($4600)Conversion of the family room on the 1st level to a 4th bedroom. ???

@Manolo D.Based on conversations with my bank, as long as I have the 20% of total costs, it does not matter how that equity is divided (cash or land).  

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