Since you are new I’ll illustrate an example that aligns more and more possible,2008 friend and I bought a home together for 200k. 2011 he decided to leave and the pmt of 1390 I could not afford alone and house would maybe fetch same price, resulting in paying to sell.

I wouldnt be soliciting for anything I wouldnt do myself, and part of the deal would illustrate this.

To illustrate my question using a simplified example: if the total proceeds of sale of the partnership owned property are 500K, and my subsequent share is 250K, could then leverage my amount due for capital gains of 250K to invest in a QOZ property?

Illustrates the importance of understanding prior uses of property. https://www.pnj.com/story/news/2019/10/11/santa-rosa-county-couple-finds-dump-new-property-near-gulf-breeze/3913016002/

Wish I could claim all the credit for using this effective illustration, Joe, but this chart is what @Scott Trench uses to explain his approach to financial freedom in Set for Life. 

I'll continue to upload photos of completed buildings and units as they are available and will also break it down by building for a more comprehensive look and to illustrate lessons learned in a more precise fashion.

I bring this up to illustrate that we believe our tenants are getting a very fair deal.)

As @Scott Lillico illustrated, most of the "Big-5" have a hybrid financing product (for residential properties) which is a combination note and secure LoC.  

This is commonly illustrated by doing a 5 year scenario where you sell the property at the end of that term.  

If you project $550 per house across the 10 houses you could buy in this manner you would have $5,500 in cash flow for the same 200,000 investment (33% Return)Now these numbers don't account for nearly any of the expenses you should consider when evaluating a deal, I'm just illustrating the gross income difference with using a mortgage for leverage.You still want to be a cash buyer because of the advantages Chris pointed out.