This actually seems like a great scenario for a 1031 exchange based on what you've said.

Hopefully someone else will actually have something positive to contribute, instead of a rude response that adds no value, and just adds to post count. 

What happens if at the end of the day I actually did have more than enough to be happy and all the stress (of the rentals) was not necessary....

You technically CAN break it up on Schedule E; however, it is not the best thing to do for audit purposes or an actual breakdown.You should have an operating/partnership agreement together and you should have a dedicated bank account for the property.  

Has anyone actually made money with this?

DSCR loans are based off of down payment, credit score and either actual or market rents so it helps to supercharge an investor's real estate goals and net worth.

DSCR loans are based off of down payment, credit score and either actual or market rents so it helps to supercharge an investor's real estate goals and net worth.

So while I have family nearby I want to minimize excess wear and tear because 1.

Quote from @Dennis Bragg: Hey @Van Lam, I’ve actually seen a few folks in Gainesville work through a similar scenario.

I have actually seen this before and courts usually stick to the rule unless you get dam lucky.