It is my understanding that you CAN exchange from sole ownership to a fractional interest, but there are rather stringent regulations (https://jordanramis.com/resources/articles/§1031-e...)4.

They seem to offer full notes or fractionalized interests in them as well. 

You yourself are taking on just a tiny fraction of that sec 8 tax burden since everyone else is paying for it too. 

It also depends on if that’s all his money total or just a fraction.

@Virginia HedgesSince NJ is an expensive market, house hacking could be worth it even if you can't live for free but paying a fraction of your current rent/mortgage. 

I have a pretty good job here and a rent controlled 1-bedroom apartment in which I pay a small fraction of of what my new neighbors are paying so I want to be careful about giving that up.I really want to put this 30k to work for me, but as Alexander pointed out I shouldn't be too hasty.

For a fraction of the cost of a softener with the same overall results it can’t be beat.

That amount was a fraction of the loan amount, but nowhere near 2%.

Even if I only end up being a small fraction of that successful it's enough to give me what I want in my life. 

Recall that we have fractional reserve banking.