You will start off with an all new cost basis and a fresh depreciation schedule.

Thank you @Brian Eastman and @Daniel Dietz for putting that into perspective for me.

We have decided to create our own PM company coming from the perspective of an owner first.

I don't know where you're at from an investing perspective, but when I do some of these calls I make it very clear that I am going to be needing a property manager as I grow my portfolio.

So a property that might be a little tight from a straight investment perspective might work for you since you'd be saving money on your housing expenses. 

I personally have cash flow on property that I think was a great investment, none of which meets the "1%" rule, and the investors I work with as an agent perspective are also not receiving "1%" rule properties, but we all agree they are good investments nonetheless that are still kicking off monthly cash flow.To keep it in perspective, you cannot have the same rule for two wildly different markets, even on a city-to-city basis within the same state.

With that said, all of these problems actually resulted in fantastic loan terms at the time for commercial real estate borrowers -- very high LTV, very low spread/ margin, interest only for term, pro forma underwriting, etc.To give you some perspective on how we are still feeling the pain of the "go-go" CMBS era 10+ years ago...

I'll give you my unique perspective.  

My suggestion would be to contact @Dann King he structures deals like these all of the time and can probably help you structure your deal for the best chance at financing From a lender perspective you would be looking at probably 40% of the land as is value if it is not entitled, However paying for the entitlements upfront and possibly having LOI's in place with your end buyers (the builders) can add value 

Hi all, I am still fairly fresh and new to BP....but have searched for this answer and have not found it yet.