What are the approximate costs to start the process and what sort of total costs would I be looking at?

This has less to do with any of the other residential/commercial designations above and more to do with the perspective of a residential rate being for SFR and small MF and anything denser is 'commercial'.In your scenario it's not clear...but is the utilities department holding up your building plans, or some sort of right of way or public utility connection plan? 

I'd push for a year unless the work done was some sort of stopgap measure with no guarantees. 

What I am attempting to point out is that it seems there is a stigma of sorts that there is a secret place to find "the good notes" to buy.  

For instance, I've talked to one guy in particular from loopnet who advertises 25% cap rate and then on the phone he's sort of like "well.. you know... it's more like 18%"  Don't get me wrong, 18% cap rate is amazing, but why lie about something so fundamental on loopnet then tell me something else on the phone?

You wanted a formula of some sort, so yes, to most flippers 70% of ARV - repairs is what they want to pay, but definitely remember that that is not always in your best interest.

I have a home improvement business and I work with a few RE investors who have been sort of mentoring me, but their time is limited and I end up doing a lot of research myself.

Coming from NYC, people are experiencing more and more problems with the company and these sorts of rentals.

Take the gift of some/all lots and build long-term or short-term rentals (bearing in mind that we have only experience in long-term...zero experience in short-term rentals)-  We would have to have some sort of partner with this deal since we have no cash to build - There are not a ton of rentals in the area, so I'm not currently sure of how much a long-term could even rent for.

A bonus of sorts, but paid as interest.