I would worry less about the competition and offer a price and terms that makes sense for you.

Perhaps RESPA or some other Fair Housing Laws such as EHO (Equal Housing Opportunity) might make more sense.

The reality is that if it's an un-subsidized portfolio mortgage, the rate/points needs to beat the ROI of a Wall Street index fund or generic REIT, or it would never make sense for a lender to do the loan, since they could park the $400k with Wall Street or a REIT and make more than they'd make by lending you money.

I've done this a few times sense then I now do this...1. 

If the deal makes sense and it fits our criteria then we move on it.

Absolutely make sense.

Like I said, it doesn't make any sense because the area isn't getting any better.

To be honest, in my opinion, the numbers really don't make sense on this deal with the SOW numbers the city is presenting.  

Tracey you have run into the thousands of scammers on FB that are fake lenders.there is no such thing as a 4% land loan.the English is bad.. use common sense here..

This is just my preference, I would buy in Cincinnati if the deal made sense, but I would target C+ or better neighborhoods, multifamily with 1 or 2 bedroom units.