Thanks for the tag @Chris SeveneyFlipping in Howard County, as well as Montgomery County is pretty hard. 

Yup, typically if its highest and best use is residential then residential financing isn't hard to obtain for a commercially zoned property.To the question of developing on the land, which sounds like it's on the same parcel as your building, that would depend on your cities planning and codes.

They seem to be able to make their desired profit.They are wagering on market/rent appreciation.They see a hard to identify value add. 

Right now I have been looking into a hard money loan or another idea to help me get started.  

You will have a hard time rationalizing someone into taking the emotion out of their decision making process.

Are you looking for a bank or private money or hard money?

You have to find that sweet-spot where any rehab work you do puts money in your pocket and is not money down the drain.I know markets where adding granite countertops won't get you $1 more in price (although it may sell faster) and other markets where granite adds a lot of value and it is hard to sell it without.  

It’s a very tough market in South Florida.Everything is overpriced and deals are hard to find.

Great tenants are hard to come by so I am always a proponent of working with great tenants to keep them happy within reason.

@Matt Faircloth , I have only seen this in on one SFR flip we were doing.It seemed hard to maintain as you noted and not sure I would put it into an apt complex.Even with the maintenance plan, you will still have the high humidity issue.