Assuming the land cost was affordable and clear, what major financial challenges can come into the picture upon the decision to develop a small complex and is there a "play" these days for developing smaller complexes (30-40 units)?

I’m slow playing it, and building rapport, I just want to have my mind right when it comes to the negotiating.

Looks like a great long term play @Eric Prine!

It’s one of the few real estate “investments” you can allow your emotions to play a roll. 

If you're buying property for the long term play you'll get a 30 year conventional most likely.

It's a long-term play.

If you play your cards right, you can find a lender who will allow you to use the "delayed financing" exception to do a refinance without having to wait the usual 6 month seasoning period.  

From there you might consider what role you want to play: do your own deals, or fund someone elses? 

Purchased the property for 131k and can get 220-230k if its nicely done so there's some room for me to play around with. 

You can play around with the numbers though and make it asimilate it though.