So does this work?
Could I take Magical Lineage which reduces the effective spell level a chosen favorite spell when a metamagic feat has been applied to it by 1 to a minimum of +0? Then make a Wand out of said metamagicked spell?
Example: I pick Favorite Spell Inflinct Moderate Wounds as my Magical Lineage feat, (dad was lich or something), then I take the feat Reach Spell, reach spell increase a spells level by +1 if improving the spells range by 1 step, or 2 if two steps ect ect, then I apply it to my Inflinct Moderatw Wounds spells then craft a Wand, is the cost of creating this wand that of a 2nd level spell or 3rd, I presume the spells range is close for example sakes, and thus 25ft + 5ft per two levels of the wands crafter level at the time of creation?
Even though its effective spell level is +0, its actual spell level is still +1.
The cost of crafting a wand of a particular spell from a particular spell list with particular metamagic applied is the same regardless of how talented the crafter is at casting such a spell themselves. If you want cheaper crafting, you'll have to find abilities that specifically lower crafting prices, such as the hedge magician trait.