The IRS may scrutinize such transactions, especially if the "swap and drop" occurs too close in time.If the partnership has to be dissolved immediately it will be tough to sell the one property and defer taxes individually. 

We are closing on a 2/1 condo tomorrow with a small fenced backyard and a metal storage shed.

Unlike banks, which offer limited loan options, brokers have access to a wide network of lenders, including niche and non-traditional financing sources.Here’s what they do:Assess your financial situation to determine your borrowing power.Compare multiple loan products to find the most favorable terms.Negotiate rates and terms with lenders on your behalf.Guide you through the application process, ensuring you meet all requirements.Example: Suppose you have a lower credit score or unconventional income sources.

The struggle comes when you plan to sell, pay close attention to how the bank would treat the loan in the event you would sell.Even though its a bit more work, banks are typically open to these loans as it provides them with additional collateral in the event of default.  

Thanks Lauren - no one close by except a lady I wouldn't trust......I think it may be a bad idea too, just wanted to explore the concept a bit.

Mean while i would be building equity, and if rates do lower, or when the term ends, could refi for better rates and then maybe cash flow.My questions are:Is this too naively optimistic?

that is a much lower risk way of getting started than with a sub to deal

Everytime you get close to depreciation running out (or want more) you 1031, expand your holdings, and your tax write off. 

There are significant advantages to investing here (lower barrier to entry, much better price to rent ratio's, etc. etc.).

Not sure how close you are to the partner but you may want to work with someone else for these kinds of rehab projects in the future.