That All in One product has a number of benefits that are appealing.  

I'll try to spell out some of the Pros and Cons.PROS: If you are new to land lording and have no credit/poor credit and no track record that would be appealing to banks, but you do have money or have access to money through investing partners, the deal could make sense even if they require more money down and charge higher interest. 

Neighbors carry a lot of weight if you need to go through Zoning appeals so knowing if the area is amenable to your project first will save you time and money.Supposing that goes well, then you're on your way. 

The lender is going to appeal the appraisal.

I found an appealing conventional loan.

It demonstrates competency and defends against emotional appeals.

Certain cities seems to lean to one or the other so we go with what the local norm is when we are trying to add value/appeal to local buyers or tenants.  

I'd love to find private financing but this is my first development and I'm sure that's not appealing to a private money lender.

Yields have really compressed, I wouldn't invest in an NYC suburb - however, NYC has become appealing for the first time in quite a while. 

The idea of little to no maintenance or cap ex for the first few years is appealing.