There should absolutely be no hesitation if the property cash flows on a long term basis.

A few lenders we talk to can use the 15% land purchase cash as the equity in the construction loan deal.

How much cash do you have for a down payment and how much of a purchase are you thinking of making?

My plan is to refinance the land with hard money, pay off my debt (40k) with the cash and then take over my rental property.

Cleveland is a great market for cash flow or fix and flips.

@Erick Arana - Happy to talk to you about a DSCR cash our refi to pull out equity so you have another option in the event you are unable to obtain a HELOC 

You can find videos/articles online on how to get the basement dry, but the basic process is: 1) turn off all electric to the basement (to avoid electrocution from the water), 2) run pumps to get the standing water out of the basement (sounds like you're already doing this)3) remove all furniture and items from the basement,4) once you've pumped out the standing water from the basement, rent a wet/dry carpet cleaner/extractor from home depot, and use it to extract as much water as possible from the carpets (they'll be much lighter and easier to move once you get the water out). 5) After you've used the carpet extractor to get most of the water out of the carpet, remove all carpet and get it out of the house for drying (if you're trying to salvage the carpets), or throw the carpet out.

This would be a good idea if you want to pull any cash out to buy another property.

House hacking can be a great way to reduce living expenses and get started in real estate.To decide if a property is a superb investment for house hacking, conduct a economic analysis with the aid of calculating capacity cash drift, thinking about financing alternatives, and evaluating the return on investment (ROI).

The building itself contains a bathroom with fully functioning plumbing, electrical, and an HVAC system in place already.