You have to register, but there is no cost associated with that.  

I'd also recommend looking up a local Real Estate Investors Association (REIA) as they'll have local investors that you can bounce ideas off with.

I attended these meetings where exceptions to zoning is requested, not for me, for landlords and developers, and they were all turned down due to stiff opposition from a neighborhood association, whose head whom I met are very stubborn. 

Not to mention, the costs associated with re-titling real estate, paying the transfer taxes, recording fees and finance charges may outweigh the slight savings you may receive. 

You will get your money back but no interest and no legal fees or other associated costs. 

I am curious about the tax implications associated with this method.

Calculate the After Repair Value (ARV), or the expected market value following repairs, and estimate the expenditures associated with those improvements.

I would also suggest joining you local Real Estate Investor Association, a quick Google search will pull one up in your area.

Insurance and the structural inspection and associated repairs resulting from the fallen seaside condos has resulted in huge HOA cost increases.  

@John Mason yes, but I am sure some of the condo associations probably do not allow them or there are other restrictions.