I am not sure what the status of it currently is — already capped, I imagine.So based on my current circumstances, and in alignment with your suggestion, I was thinking that the best option would be for me to continue to live in this condo, continue saving up, and then combine my savings + pull equity from this prop to invest in an affordable investment property when I can, ideally after a year or so.

In exchange, I'm thinking that she would collect all the cash flow and potential equity until I refinance and get the loan originated in my name...

I don't have experience with this, but I caution you to not think of a 20-year lease as long-term.

That is what I am thinking.

Quote from @Diana Mulvihill: I think "soaking tub" is a more accurate term.

I think it's easy for people to get caught up in the beauty and adventure of it all, without seeing the big picture.

I'm not having any luck selling it so I'm thinking of pivoting to a midterm and short term rental as a buddy of mine has had some success with his house in Paris Mountain and the 09 zip code in Greenville.

We have two littles and we are currently located down in Palos Verdes for my husband's job but I think it would be really worth it to try to make a meet up in the near future.

One was a nice home on I think 25 acres and owner's girlfriend was living in it. 

I think it's a great idea, if your numbers work.