I also recommend a bank that has local branch that you can go into vs having it 100% online.

Perhaps if your partner was a general contractor or handyman type there may be some merit there to reduce costs / increase profitability.If your partner enjoys deal sourcing, a better move might be for him to become an agent - so he could legally collect commissions from finding deals and managing properties for multiple people. 

So while moving back into it for 2 years does bring the 121 exclusion back into play, that exclusion is reduced based on the percentage of Non Qualified usage over the holding period.  

I can become a millionaire just by looking at street and sat view and bid online in my underwear. 

Definitely join your local chapter of REIA (real estate investors association) or join one of the ones that are fully online (Columbus and Cincinnati).

They are highly secretive however - no online presence under their names while being very tech-advanced, they also installed like seven cameras around the house perimeter.

The down fall is a Heloc can "Never" be used as an asset or for PITI reserves required when buying a new Primary or investment property.A heloc can also cause major issues with credit and one slight hiccup or missed payment the bank or lender who is holding the Heloc can close or reduce your line of credit.

Having a group of friends living in an apartment complex creates a sense of community and reduces turnover.

Additionally, timing the sale in a lower-income year or exploring potential deductions could further reduce your tax liability.

Quote from @Michael Challenger: I have no qualms with hard money lending, but I need to learn more about the process and structure to these for typical deals so that I am more comfortable and in a position to reduce my personal risk and risk to investors as much as possible.