"Commercial" could mean a lot of things: industrial, retail or office, typically.  

Also, you should contact your assessor office and tell them that you're renting out x% of your property (at least in Michigan you have to).

mixed use residential conversion of retail space to str units plus real estate office, two restaurants space tenants What made you interested in investing in this type of deal?

I know that developers in the area have rezoned these kinds of plots and built apartment/office buildings and other commercial developments.I want to bring in an investor or developer to the deal who could provide the funds and knows the ins and outs of zoning.

In this case, the second bedroom isn't necessary, but does get used as an office for the person working from home.

At each property, whether a vacant lot or an industrial warehouse, he told the borrower that he should convert the property to medical offices, and that my fund would be willing to finance the conversion.  

I am working full time at a another contractors (40 million in contracts) office as a project manager.

There's also a question for us about whether we'd derive more tax benefit from investing in a mixed use owner/user property which was partly occupied by our LLP business, or whether it would be more beneficial to simply acquire an investment property that we did not use for our LLP business at all, since it seems that we could generate more income that way and could use that income to help pay for office space elsewhere.So we really would appreciate some input on some of these concepts rather than being sold an investment into someone else's project.

Maybe try calling your local Housing Assistance Program (HAP) office and asking them about this requirement. 

I have not done too many deals in your market, and I anticipate things are nuanced depending on the property type and condition and based on the personality of the owner....BUT it is common and customary in my world, which is usually retail/med office, for tenants to have at least some time of free rent during the buildout.We usually structure things as follows, and you can change the number of days around but this is traditionally what we at least shoot for when we have a tenant we are repping.- Lease commencement date is to be the 6/1/24 or when the landlord's work is complete. and we traditionally have penalties in place if the LL's work takes too long and pushes us past our initial timeline.- then we typically have "rent commencement" or when you start paying rent, to be the earlier of either 180 days following lease commencement or when you are open for business.