However, I was unable to find any authorities that would prohibit such a sale to a related LLC taxed as a partnership. 

Before I pull the trigger, I thought I'd ask you guys to share any and all thoughts about the market.How is the current market environment influencing your decisions?

Look into 100 properties before you pull the trigger.

Your post isn't entirely clear as to who "we" are, but you need either a partnership agreement or a promissory note/deed of trust agreement, either of which can be drawn up by an attorney based on the parameters you outline.  

If you find the right property now, pull the trigger.  

You CAN create a limited partnership and define the ownership as you please, but the members can not sell their share; if a member wants out, the others buy him/her out.When we say Shares, think Stock Exchange share which are governed by the SEC.When forming a legal entity, you would acquire the right to sell shares openly ONCE registered with the SEC. 

I am unsure of how to set up the partnership.

You can hold title as: Joint tenants, Tenants in Common, Tenants in Business Partnership or as Community Property with the Rights of Survivorship.I am not sure about easier qualification for loans dependent upon the method of holding title. 

The due on sale clause is triggered by the sell by the trustee.I hope that helps. 

I would like to pull the trigger on a property very soon!