what is the development worth once stabilized?

I'd look into doing a cash-out refi on your rentals.

The sales price is contingent on the property appraising for the agreed-upon value in that given timeframe.The goal of subject to, for the buyer is to take advantage of your low interest rate, maximize profits to pocket as much cash flow as possible, and then, however, in many years be able to cash out refinance and pay your mortgage off in a lump sum to acquire full rights of the property.

Total build costs of 600k )this includes lot, soft/hard costs, and 60k overhead recovery to my construction companyAmortize @ 20 years, all expenses equal gross rents so break even cash flow.

If you use a Cap rate of 7%, the $702 cash flow on one unit becomes $10,000 added value. 

Many investors from California are choosing to invest in the Midwest because of the low barrier to entry and yearly cash returns making more sense in these lower priced markets.

I'm guessing your source is talking about trying to get a bidding war going between cash buyers.....good luck.

Also worth mentioning that you only have 15 days to submit the bid declaration.

It isn't worth it in this environment.

I'd recommend saving up some cash so that you can launch full-time in 6-12 months