And have a discussion on how to handle the different case scenarios when things go south.

Save up for a down-payment/closing costs/rehab, pay down your debt, get your DTI (Debt to Income) ratio at a good level so obtaining financing will not be an issue.Do not go bankrupt on your first deal, have an emergency fund in place.I think it's crazy to jump in without working on the above first.

I’ve reached it to my lawyer to discuss what the rezoning process would look like.

5) How can a blue collar worker with low to no personal assets/income work around this dilemma to obtain Downpayment for Hard money?

I cannot imagine anyone has a utility that reduces their monthly bills, and the discussion of aesthetics seems to diminish as the cost gap widens between fossil fuel derived power and solar power. 

Ellie - obtain the funds needed to acquire the property  from friend / relative ...pay seller the  cash ...have a private note set up between yourself and donor)   with specific  terms  for repayment ...make sure the  rate  agreed to is  a realistic  market type rate ) and also make sure that a formal lien is  filed for the loan  and also make sure you formally go into the title  .........I would suggest making a separate agreement / arrangement for the  funds  you are  borrowing for the  construction ...... 

I have 10% cash to put down and can get a bank to cover 60% of the Value,  how does someone obtain the additional 30% from open market funds?

There is a new 20% pass through deduction you may qualify for that could help you, but not everyone qualifies.These are all things you will want to discuss with your attorney and CPA. 

My idea was to obtain a bank loan to cover the outstanding balance on their current loan and then create an owner financed note for the remainder of the purchase price. 

I’m sure this discussion will be super helpful.