They document and transfer the funds from closing to closing so you do not have receipt of the funds.

Are you looking to develop apartments and retain ownership or build lofts/condos for sale?

The first option is also nice because it would give you direct ownership, which is a big strength.So, ultimately I guess it comes down to your personal cash position right now and your comfort taking on the risk of the deal. 

The building will offer short and long-term lease offices as well as conference room rentals and other rental-type amenities.Also, my sister wants to partner with me, so we had originally planned a two-member LLC.The local bank I use said this arrangement won't work if I want to get a 10% down SBA owner-occupied loan, because the ownership of the business leasing the building has to be the same ownership as the business buying the building (meaning I would have to be 100% owner of both - no partner).

Maybe bump up your ownership to more expensive areas.Maybe more out side of Denver Proper.

If I then sell the property next year for an overall gain, and the hot tub is transferred with the property but not listed separately on the sales contract, how would I record the sale of the hot tub for tax purposes?

Would a mortgage company do something like a transfer to the lesser value property?

The deed can specify what % ownership each person has. 

Walk me through the order of organization for the purchase of a small multi-family home (10-20 units)I have purchased several single-family, commercial, and duplexes before and have always taken ownership in my name.

To me it would be far more accurate to tout the actual equity or say that I am "partnered in ownership of 1100 units".