There's zero reason to do this when there are plenty of options to avoid it. 

My two partners are willing to pay their share, but they’ve also offered me the option to take over the property completely since the loan is in my name.Here’s my dilemma: If I keep the property and rent it out, I could get around $2,300 in rent, but my mortgage is $3,300 at a 7% interest rate.

Quote from @Patricia Steiner: There are several lenders who offer low/no closing cost options for first time homebuyers.

Don't be so quick to indebt your paid off townhome until your learn creative financing and review all your options.

Hey everyone,I’m Luke, a new investor based in St.

The agent turned down a seller financing option - although it was not ran by the seller - because the agent said the seller is so done with the property that she wants nothing to do with it at all.

Another great option is the BRRRR method (Buy, Rehab, Rent, Refinance, Repeat), where you buy a fixer-upper, renovate it, rent it out, and refinance to pull your cash back for the next deal, and this is a good route because most private lenders can go higher LTV than on a rental loan! 

If you are skilled in each of the areas above, and you have enough in reserves to cover the costs of when things do not go as planned, then you can likely attract money from private money lenders who want to get a return on their money and they see lending to you as a low risk way of earning a better return than in the other passive investing options they have. 

So just weighing options when I do purchase in a month or so. 

Class A properties are going to cost you more, have lower cash flow, yet be more attractive to a higher quality tenant base.