I have a lead on a lot in a well established residential neighborhood.

You may also talk with other operators in the area and get their thoughts.And as mentioned above, zoning regulations will dictate what you can and cannot do with the property.

However, I don't see where in section 121 it would address the situation I presented (which is based on the premise that co-ownership was already established and there is now an increase in one party's ownership...). 

The next step is to go out and look at a number of properties together back to back as an educational exercise and to establish a bse line for what a deal looks like.

Each area has it's own set of rules and regulations as well as dealing with local HOA fees in each neighborhood. 

Best, GaryEvery state is different and Commercial property is different and most laws regulating residential do not apply to commercial.

A third option would be to consider a Private Lender which is similar to a Down Payment Equity Partnership except that you don't establish a business partnership with them.4.

I know taxes and regulations and land lease can be rough there as opposed to Big Bear which is pretty straight forward and fairly easy to print money. 

Maybe partner with a hard money company to establish a relationship with them, etc.

As a pass-through business entity owner, partners in a partnership may be able to take advantage of the 20% pass-through deduction established under the Tax Cuts and Jobs Act (TCJA).