If you are able to prove it as a primary residence, it may be worth getting conventional financing but there will likely be a 6 month seasoning period. 

I've always calculated NOI as gross income minus operating expenses (not debt or cap ex) period. 

Over a long enough hold period this could help even out each person's contributions. 

And it also accomplishes what your friend was saying in adding numbers to your portfolioMany investors will use a BRRRR framework along with periodic 1031s to maximize available cash and buying power.

From my point of view it seems to be more benefitial if you flip homes for a long period of time than short.

Capital gains are typically reported in the year the sale occurred.Holding Period: Since you sold the first parcel in 2022 and the second parcel in 2023, you would report the gain from the sale of the first parcel on your 2022 taxes and the gain from the sale of the second parcel on your 2023 taxes.Cost Basis: The cost basis for each parcel would be the portion of the total purchase price allocated to each parcel.

There are also seasoning periods to consider. i.e. you cant refinance for 6 months or else you pay a prepayment penalty. 

Get aggressive with prepayment (paying excess principle each month) to get more equity to drop 6.Get a HELOC then pay for another home (rent your first home) then have an interest only loan during the withdrawal period for about 5-10 years. 

It's important to contact your lender directly to discuss this option and understand the terms, such as how the missed payments will be addressed once the forbearance period ends.

If your plan is to sell/refi before the loan hits it's adjustment period, this seems like a no brainer (assuming there are no pre payment penalties).