Essentially I just need to find out cost and procedure for getting it permitted as a SFH or ADU. 

For examine if you're a previous arson investigator or fire chief and the property is a burnout I would expect your value to the venture to be more essential to it's success and therefore would command a higher share of the deal's proceeds.

For the purpose of the questions, if the purchase price of the park is $1M and current assessed land value is $1M (despite the fact we know many assessments are artificially high the for tax gains of the municipality and do not reflect the true market value), I guess I'm essentially asking if / how I create a case to lower the value of the land and apportion the balance to "infrastructure", and thus gain a depreciable basis from day one (or am I dreaming)? 

So essentially you are saving 15% taxes and deferring them for 7 years.The appreciation that you see on a property that you buy through the fund will be tax free if you hold the property for 3 more years (total 10).

Another expense arises from the new lead law for rentals - you will have to be lead safe even when no children reside in any units, so the cost of essentially painting and cleaning plus the testing have to be considered.

Yeah that's essentially what my concern was.

Essentially I would get my rent each month and they would serve as property manager and be responsible for all maintenance calls and requests and keeping it full.

Update: Termite issue has been resolved the seller will essentially pay for termite treatment and the broker will assist in this by decreasing listing fee from 5% to 4.5% saving them 700 dollars and refunding me a "documentation fee" of 250 so i will get a check at closing for 700 and the 250 saving totals me at 950$.

As James said, at first it felt like throwing money away, but in an expensive location if you cannot find a cash flowing property and you purchase, you are essentially banking on appreciation only to turn a profit (unless you flip your residence - that is my one caveat).

How it would work is, assuming you’re buying a 5 unit property and wanting to live in 1 unit, you would essentially have to “split” the property, with 4 units being investment and 1 unit being non-investment.