These things happen, just make sure you document as well as possible.

We are in Mesa Arizona and looking for any advice possible.

If you were providing all of that from your 50%, maybe, I wouldn't but I could see a market of enough size possibly going for that. 

I am looking at 1031 possibly or just fixed refi/or use my heloc for the time being on a value add for a building 10-40 units (market dependent on price). 

That's only possible during the "edit" phase right after the original post.  

Ignore seller finance for a second...Can you buy a house, put 20% down...yes.

What is your finance mechanism and terms?  

I would like to explore the possibility of getting my first property in CC custome built.

Especially when it comes to the permit side of things.My initial plan is to ask as many questions as possible and to search for information so that I'm at least somewhat on the lookout for some of these snags. 

And I have tenants that make multiple small payments every month because after they’ve moved in they’ve had their finances screwed up from what they were when I screened them.