Definitely open an LLC if you haven’t done so already and once you have a couple under your belt, you will have lenders lining up for your business.

I live in Phoenix and my business partner and I put on a couple local forums for investors like yourself to network.

Don't apologize, don't explain how the 'chosen' tenant was more qualified than they were, wish them well in their search.You're running a business and you've made a business decision. 

Having the seller carry a second is not a problem for the first, as long as their business with you is finished and the loan has closed.

It's a business - acquiring/building, managing, and growing a business. 

Call the zoning department again, and this time ask specific questions: Is a variance required, or can you proceed as-is?

I have found enough business and made enough money not to need to expand outside of this market.Section 8 is a whole different ball game but I find the program is unique in that it's a 3-party relationship adding the variable of a government agency.

Quote from @Matthew Cook: Dig into those comps with a realtor doing business in that market.

I dont know your business model exactly but I assume you collect some referral fee from the supplier?

I think you just have to work it in as the cost of doing business.