The cause of the 2008-2010 Great Recession was bad real estate loans - if you could fog  a mirror, you could get a mortgage!

If you are doing a live-in flip why not use that equity for a down payment with a refi or HELOC?

Together, the property nets us roughly $1,400/month after expenses.Equity Split: My partner owns 60%, and I own 40%.I'm exploring ways to take out my equity without disrupting this deal, as I feel this isn't the best financial decision for me right now.

I too live in Marin, and feel it is a solid long term market for apprecaition, and utilizing the power of principle reduction.When it comes to refinancing, figure out what the loan costs will be, then divide that buy the monthly savings with the new loan in order to determine how long you have to maintain that loan to break even. 

House hacking is using an owner occupant loan to get into a home or a 2-4 unit property.

@Veronique Leroy I would say it is possible if you force equity, hold for a few years and then sell and then average the return of the whole profit over the timeframe of deal.

All of which nothing will help him because the loan is still in his name. 

Thus, they take extreme risks and look for corresponding discounts.Additionally, after the first position lender accounts for default interest, penalties, legal fees, foreclosure fees, accounting fees, and everything else, the equity in your combined <65% ARV loan can easily erode to zero.

We want to see equity, seasoning, a quality borrower, and good terms. 

Quote from @Austin Brummett: I wouldn't do anything right now except continue to save and learn, because you are likely moving soon.Lenders usually want to see two years of employment history, so you won't qualify for a loan any time soon.