Our newspaper noted they had invested over $1b in the area, but I think that covered 2 mega sites.

But Scott's model does not target business investors exclusively, they (he and his students) sell ton of properties to owner occupants.

Many borrowers file this form as an exclusion to their US federal taxes as they may have been taxed by the country where they are earning the income.Required Documentation for Foreign IncomeWhen it comes to processing foreign income for a loan, documents required may include:» Most recent personal tax returns» History of receipt» Proof of continuance of foreign income earnings» Conversion of the income from the foreign currency to US dollarsThese documents must be translated or completed in English so that a loan reviewer can properly evaluate the information provided.Fannie Mae & Freddie Mac GuidelinesIncome from Foreign SourceIncome from foreign sources must be reported on the borrower’s most recent U.S. individual federal income tax returns.

There is a way for this to be done.But, this is not the legal posting newspaper.

Are there any IRS exclusions for long term land leases?

I don't think most buyers, especially investors, appreciate having to sign an exclusive buyer's agency agreement prior to seeing their first property.

- Do I qualify for for a section 121 exclusion sense I lived on the property for the first 2 years of ownership?

Spanning more than 8,000 square feet, this outlet will feature a large outdoor patio overlooking the Strip and a unique company store selling exclusive merchandise alongside your favorite burgers.

The Owners Agreement has been a big help as it delineates the exclusive use/rights and shared rights to each area of the property. 

I do not think options 1 and 2 are mutually exclusive, in fact I think you should do both.