Despite paying fees, doing a deal and making some profit is better than sitting on the sidelines. 

Are there any lenders or resources out there that can provide DSCR loans or other types of loans that are less than 100K and don't require prior ownership history?

We are not too strapped for cash, but it always seems better to have more in the bank than less.

Since the house was fairly new, there were no major expenses other than the cosmetic things we did.

The Property Manager usually does light cleaning and repairs between tenants.Recommendations or another way to think about this? 

A couple of follow up questions. 1) After the 1031 exchange, and then after the follow on 721 contribution, I own an interest in a partnership held by the UPREIT.

When you own a couple of units, the odds of there being unexpected vacancies that overlap each other are usually low, but when you acquire more and more real estate, the odds of tenants moving out around similar times increases. 

These areas usually strike a balance between affordability for investors and demand from tenants with vouchers.

I am looking for suggestions on how to structure a partnership (short term) that will benefit him but allow me to be dissolve our partnership after a couple years as he isn't interested in long term holds. 

Quote from @Jay Hinrichs: Quote from @Engelo Rumora: @David KanarekI don't think I have ever seen better investigative research than this.Hat's off to you and sorry for your troubles and everyone else's.Please don't investigate me haha Engelo as someone that has taken this kind of abuse on BP and SM  and lived to fight another day I think you understand better than most investors mind set and how they feel or attack if their deal does not go right.