The disadvantage is you're not close enough to check on the properties.

Generally, its not needed when starting, and has its disadvantages. 

The challenge though lies upon property taxes, which for someone already paying income tax in their home state, is a major disadvantage when combined.

The only other disadvantage I can think of right now is a further reduction in bonus depreciation.

what's the disadvantage?

And then you end up with the property after selling your old property and using those proceeds to move them into the EAT property.The two big disadvantages to these are that you have to have a source of money to buy the new property. 

I'm at a greater disadvantage because my part of the funds has a higher financing cost  2.

I'd recommend traveling to conferences and trying to pitch your plan. you'll see you have to step it up, have underwriting, etc because the guys like me competing with capital have all that and if you don't you are at a disadvantage 

HELOC is based on Prime-rate hence it's disadvantage to use.

The fact that you chose to allow the new tenant out of the lease because of a family tragedy is nice but why should the original tenant be disadvantaged because of your choice?!?