However, structuring this in a way that complies with tax law would likely require expert legal and tax guidance, as it involves partnership agreements and IRS regulations.

I would like to know more about the role of zoning attorneys and the potential costs of involving them in organizing and submitting the proposal to the appropriate departments.

., they are going to get the accurate, honest review that they earned, not some lame response like, "We're sorry that you felt like checking in one night early, was not appropriate". 

If you don't have appropriate funds to enter a physical asset-- meaning physical risks, humans to manage, etc., then it's best to wait until you do or invest in a REIT.You're just not fit...right now. 

Is it appropriate to request to be released from the contract so I can look for someone else or just go it alone like I have in the past?

In this case, it would be appropriate to allocate only a nominal amount, if any, of the building’s sale price to carpeting.

Plan your house hack by running cash flow estimates, checking rental regulations, and planning for FHA or Conventional loans.

Are there any other considerations to ensure appropriate liability protection in this arrangement? 

I think each combination of job speed, size, margin, judicial vs. nonjudicial foreclosure, transparency level, etc. each turn the dial up or down on the appropriate deposit size. 

There's a very good chance the issue(s) you face have already been discussed and answered.Ask questions in the appropriate forum.