That what is I prefer; lower profits but less headaches and consistent paying tenants.

I would go to a few and start talking with other like-minded individuals. 

I could fund raise from family as a last resort for a "down payment" to the lender, but I would really prefer to have just one note to pay. 

Finding a creditable tenant is what some of us Landlords focus on.But, sometimes credit don't really tell the whole story about the individual.

If inherited, they would have a new tax basis and little or no taxes (which would be preferable except that means granny died, good for taxes bad for granny) but since you said a Quit Claim Deed was involved it's unlikely it was inherited.

Primarily, they are for referring out of your area, but I know some that use them to refer out clients that they don't get along with, but prefer not to totally lose that commission.  

Although I'm open to working with any lender regardless of location, I'd prefer if it were in Charlottesville, Harrisonburg, Richmond, Virginia Beach or Norfolk. 

Further, most want to divide the plot into individual units, which seems silly to me and multiplies the closing costs.

Because it flows through your 1040 it would get taxed at the rate you as an individual get taxed at. 

The family member also has a friend who would use a portion of the building, so three individuals would be paying the rent.