Most of the successful investors I know subscribe to the "inch wide, mile deep" theory.

Yes, @Jim @Jim Cummings, what I mean by $1M is based on my liquidity I can secure upto $1M or little over that, of agency debt.

If it’s illegal I just can’t see why it would be so widely recommended.

If they have to leave sooner, tell them that they'll be responsible for rent until you're able to secure a new tenant. 

And don't forget - if you want to sell your WRAP at a discount - WOW - more cash in hand.Oh - you may want to consider an unsecured mortgage or secure the seller financed mortgage on another property you own, now you have a free and clear property ---- just think what you can do with that.One more thing I should mention while we are being financial creative - when you get a new mortgage on the property, offer the seller a PAY-OFF at a reasonable deep discount -  you win again!

If you will be forming this corporation/venture with more than 2-3 partners, your are wandering into the realm of the securities folks and you will absolutely need the services of experienced counsel. 

@Jim Adrian thanks for mentioning the ADA design - the good news is the paved access pathways are pretty good although he'll need to measure for width but everything commercial is on the first floor and pretty wide open.

Also, in the event there is damage to the premises that the current owner is not aware of, how do I know what the condition of the property was prior to the tenants moving in or if they are trying to recoup their security deposit by claiming that the damage was there prior to the tenants moving in?

No, but I once had a someone break into one of my properties by pulling the power meter in order to bypass a security system.

Pitch your development to potential customers and just make sure the lease language has a poison pill that will let you out if the project doe snot secure financing.