I rarely will buy an existing building and rehab, all my multi-family started from the ground up.

If so, great, otherwise you can just as easily 1031 in to a nice property near you (probably bringing in less rent but still no debt.) or you could use it for 1/2 down on two properties that would probably rent for more combined and have a low/manageable payment. 

I am a partner with two others on 30 units held in a combination of LLCs both 'cash' and 'retirement' funds.

Between BAH and rent I'd ideally like to make a small profit but looking at the cost of housing combined with the property taxes and utilities, it seems like it would be a struggle to just break even.

With the full amount with the two combined the buyer can use those funds towards any upgrades needed.Has anyone tried this strategy before, or am I on the wrong track?

Rarely are payments made when a property is in probate, either (1) provisions were made by the deceased in advance or (2) the inheritor is a close relative who wants to live in the house.  

Unfortunately, people with the knowledge @Thomas Rutkowski Has are rare.

All Foreigners combined buy about 5% of our real estate but 50% of that total I s in California Florida and Texas. 

And you can have a finished basement its just to consider it a legal apartment the requirements are astronomical to make it legal that its super rare to find a house with one.

It's unlikely you'll be able to combine hard money with a mortgage.