If it is someone you know you can give them a straight return as if its a loan - can provide a lower interest rate to provide upside - it really depends on the lender and what are they concerned with and what is their risk profile. 

One difference was to have two properties appreciating (though at very different rates as they were in different areas) instead of 1.

Yes, that means he will have to give up his 3.5% rate (or whatever it is assuming lower then today rates) but it is what it is. 

I work with some builders and they have 2-4 units with rates in the 4-5% range.

Congratulations, you get to share your partners tax burden and pay the depreciation recapture at ordinary income rates. 

Here are the key details of my situation:Rental Property Details (Note: This was our primary home till 2017):Current Value: $970,000 to $1MPrimary Mortgage Loan Balance: $505,000 (@ 2.6%)Took Home Equity Loan on this house to make down payment for my current primary residence.Home Equity Loan Balance: $123,000Total Loan Balance: $628K (Primary Mortgage + Home Equity Loan)Rental Status: OccupiedPrimary Residence:Purchased in 2022Mortgage Rate: 7.3%Current Loan Balance: $650KMy goal for 2025 is 2 fold: #1.

Some of the new build SFHs are very affordable with in-house lender rates.

They offer an all in one policy, and also had a great rate compared to the others.

While there is no official holding period, tax advisors recommend keeping the property under the trust for at least 12 months to meet the "held for investment" requirement.

I spent months reading, browsing forums and meeting with other investors to prepare.