I'm sure that there are a few big Players here on BP that has done that before, especially those that buy a LOT of inventory for their portfolios. 

The trick is finding an equalizer or something that allows you to compete with theses types of players.

I've been engaged with an owner for several months who plans to sell his business and retire.

You can engage in legal gamesmanship, but that would come with a price which may not be worth it at the end.To your success!

@Luis Escobar, If you haven't engaged a QI to handle that sale as a 1031 it's a moot point. 

Bruce Norris was talking about the west coast MFR market and made the comment when he talks to the bigger players in this area.. and ask's would you buy your deals at what you could sell them for today.. it was a resounding NO.. so in my mind if you would not buy them today at what you can sell them for.. might be a good time to sell take profit and reposition somewhere else like this gentlemen is talking about. 

@Edward Burke What you are looking for is an Insurance Policy that replaces the Coinsurance clause with the Agreed Value clause.This policy gives you the ability to insure a building for less than the Replacement Cost, without being penalized for not insuring 100% of the Replacement Cost.Most companies do not offer this coverage, which is why your not getting great responses to your request.Also, if your calling the companies you list above, they are not players in the commercial Insurance space, and the agents don't have the ability to craft a policy to your needs.There are several insurance carriers that can do this. 

Therefore, a partnership makes sense so that the entire 8-units and commercial space is run by one entity which splits the income and expenses appropriately.Since my wife doesn't want to engage in a direct business relationship with my brother, she would prefer for us to purchase the properties seperately; how would you suggest to organize this purchase so that both parties are satisfied?

Also, you can engage your lender early 45-60 days out to begin underwriting the loan from the 6 month requirement and arrange settlement to occur right around the 6 month mark.

I am finally ready to not only start engaging & networking on here, but we are actively looking for our first property.