It depends on your local laws.

There's no refund for the time and effort spent.2) Dependent upon City/County Approval: Even after all the due diligence, we're still dependent on the city commission's approval.

The process is very involved as you'll have to navigate pre-construction activities that involve architectural plans and approval from the city and then the construction activities (Shovel to soil) take anywhere from 5-9 months depending on how much your building. 

Air conditioned air leaking to crawlspace making crawlspace heat or cold depending on season causing more power bill to tenants.

Depending on if you qualify for the special allowance for active RE, you may be able to take up to $25k in losses (unless you are full time in real estate and may be able to use real estate professional status). 

I also know Arizona is fairly investor 'friendly' and has fairly low property taxes.Interested in purchasing small multifamily properties (2-8 units) depending on the property and numbers of course.

It might be worth quite a bit, depending on how much cash flow it is generating.

Depending on property titling one partner can get the conventional financing and the other can make a gift or use their assets for the remainder.  

It really depends on your market and the owner's needs if sub to is even possible.

It defiantly depends on what area you're looking into.