The seller has acquired the zoning variance to legally have a multi unit, However the setup of the units is still very inefficient and could potentially be leveraged into 5 units with some rehab.One advantage that this property has for me financially is that I can buy it as an owner occupied and pay little down payment.

They called it a pyramid scheme, said they had financial issues, etc. 

Thanks @James A. for the advice, I'm definitely leaning towards the partnership route both for the financial reasons as well as the support in splitting the risk/workload.

I really like your creativity but I think it could be used in a much better situation that makes better sense financially.

While anyone with the proper securities licensing can sell them, your typical financial advisor doesn't know real estate. 

You will likely find that advice results in a financial benefit vastly exceeding the cost of the tax returns. 

Hi BP, I found a commercial property that I really like but the agent is telling me he won't share the financials on the property because the owner isn't ready to "market" the property unless he finds a 1031 Trade.

You could create an LLC and yes a bank will lend to an LLC as long as the members are financially strong.

You've got to make both the seller, and the financier buy into your program. 

Need to see actual historical financials.