. - The money partner doesn’t need to worry about the financing or keeping the debt in their name which may reduce risk for the money partner.Long-term tenant to reduce turnover.

It is usually reduced leverage but an option! 

Completely eliminated noise complaints from the lower level and reduced utility costs.

Consider the aesthetics, privacy and reduced contact with passers by if there are animals involved.  

Assuming you go the HELOC route, another option to reduce your costs assuming you have decent credit is to look at credit card balance transfer promotions.Back in 2003-2004 I had HELOCs on my investment properties and interest rates were increasing.

Imagine making millions of dollars over the course of your career and then having to pay 30-50% every year to uncle sam instead of compounding that cash over time.This is exactly what real estate professionals have learned to mitigate.To reduce their taxable income, they just buy a building every year, do a cost seg, and use depreciation to reduce their tax liability dramatically.Their personal wealth snowball grows much larger and much faster than their W2 counterparts who give most of their money back to the government each year.Following this strategy as a real estate professional is one of best ways to end up with a much larger net worth at the end of your career.

Reducing risk requires at least some time spent in research and involvement in a deal.There are many other things you learn along the way as well. 

At that time, there were public records showing missed payments and multiple distressed properties, not to mention the overall struggles of the student housing market.Even the underlying investment showed major red flags in the PPM which she never disclosed or mentioned to me.

Joint ventures or private lending can help you acquire more properties while reducing personal risk.

At this point since it's after the fact while not totally correct; you may explore adding the missed asset/basis amount as a selling cost to just reduce your gain.