You can't sell a portion of a property like you can sell portions of stocks, bonds, mutual funds, etc.

This type of project is a future goal of mine.

Purchase preforming notes capped at half your total deployable capital (150K)Then sale the future revenue of those notes through note exchanges, doing this will allow you to hedge the US real estate volatility while turning a profit from the market  

The stock market is, of course, up and down.

After that, all rental losses are blocked and pushed into future years.

If you convert the garage, you lose that as an asset to the home and a future home buyer.

When the syndication is sold in future years, are the gains, depreciation recapture, and distributions also taxed as active income?

I'm looking forward to shifting my portfolio in the future to longer term tenants. 

Zoning, special use or variance potential, future zoning map2.  

A 1031 Exchange looks like its the best plan here but you'll have to be diligent to find an exchange property that also meets your future goals and works with the timeline of your home sale.1.