There's always a chance you can get all parties to agree to end the lease early or adjust it.When a lease expires, you can terminate.

How would you let the bank know that you can move forward with the deal without letting on that you received the down payment funds from a third party?

We are, however, looking to tackle the challenge at getting funds, so that part is correct.  

The other thing to note is that if anyone is interested, I’d like to purchase a cost seg report on the property, as well as manage the property on my own through the end of the year before hiring a 3rd party management.

Mislead the other party/ don't hold up your end: This happens when you back out of agreements or fail to keep up your end or act in a misleading manner.

I read it all the way through front to back & it never mentions if either party breaches the contract early.

It allows you to track all your accounts in one place but in regards to your comment about fees my favorite part is their Retirement Fee Analyzer which looks at your accounts and projects how much you will lose over time due to fees.

I would have it 3rd party managed.

It’s easy enough to split the credit line by ownership percentage, but if one party uses more, and/or doesn’t make their payments, the other party’s credit gets hit and ownership gets put in jeopardy.

You can easily be either party in my example and still turn out ok.