This makes it a single lot which would meet the frontage and setback requirements, but would allow him to also build up to the full 20 units/ac.That triggers the next question what is the valuation difference between his fee simple townhouses/duplex and a "condo"?

Then, when you find a property, you can pull the trigger with confidence. 

The additional information (about the IRA trust) adds quite a bit more complication to your initial question - is the IRA still pointing to the trust - was it split - does the trustee make RMDs to you - is the IRA in your name or the trust - is the 5-year rule triggered - etc ? 

I am looking into purchasing my first investment and I would appreciate your input before I will pull the trigger. 

If you think this is the best deal you can do, and it makes sense for what you are trying to accomplish (forget the 2% rule not everyone can achieve that in every market), than pull the trigger.

This was because the LOC can sit idle waiting for me to pull the trigger on a property.

But never pulled the trigger.

I haven't yet pulled the trigger on a commercial property, I'm just spit balling.

(as there are every where) You would just need to spend a good amount of time really learning the area and being comfortable with all the forces at play where you eventually decide to pull the trigger. 

Could the rates be what triggers the correction?