If you’re talking about keeping a very small portion of your portfolio crossed then I don’t think it matters as much.

What are the best ways to finance this portion?

Is the approval only to occupy a portion of the building?  

@Justin PolstonJust keep in mind, if you are going to peice meal a portfolio purchase, you will have seperate loan fees and closing cost for each transaction, with this many units it could eat up a siginificant portion of your profits.

The idea of the buy portion is buying the property at a big enough discount, which makes the original finance difficult and cost prohibitive.  

As such, you need to be paid for that work in ADDITION to your profit on the flip, not making that a portion of your flip profit.

They're all responsible for making sure it gets paid, and they're all responsible if it doesn't.However, if I'm understanding your post correctly, it sounds like you might have separate leases for each of them in which they're only responsible for their portion of the rent. 

What I would advise you to do is purchase a vacant policy on the home while you are doing the remodel portion.

The biggest benefit for me is that it would eliminate a good portion of income taxes from depreciating which is my main goal .

It's when you buy a property with the intention of you living in a portion of it while renting the rest out to tenants.