I think my options are : Sell current house, sink most/all proceeds from sale into new house; buy as much of a house as we can buy because it’s a hot market and should appreciate well.

One option rather than doing that could be Subject To - in which you buy the house for $184K subject to the existing mortgage.

This is all true except the no expenses or depreciation part, you actually can do that in an IRA (just doesn't help you personally today) on leveraged real estate because that portion of the income is subject to UDFI/UBIT tax which is calculated after deducting the first $1000 and accounting for depreciation and expenses as it relates to the % of the mortgage. 

So while the partnership may show a loss, the loss would be passed through to your personal return and then be subject to passive activity loss rules.The partnership only creates more of a headache as there will be additional tax filings and fees for creation and ongoing support.Activities inside a partnership are not necessarily taxed any differently than if they were reported on your personal return.

See if you can get a subject to lease agreement from one of your friends or associates.  

@JD Martin the biggest issues have been related to furnaces, hot water, a missed clean, and broken hot tub. generous refunds have ranged from 25-100%, it really just depends on variables like nightly rate, guest demeanor, impact on their stay, etc. 

So he may consider this most of the basic functions of PM without actually being a PM (and thus not subject to regulation). 

I was going to have to get a zoning variance because the subject property was in a low density residential zone.  

Points will be deducted for deficiencies and remove subjectivity in the inspection process.

People have done loans subject to but the original borrower stays on the loan and it could be at risk to be called once a deed is transferred