One thing I love about New Jersey is that the history of ownership shows online for anyone to search and find.

As you mention a change in ownership style is a risk. 

To see how their cash flow numbers have held up over the long term with these properties (after turnover, repairs, PM issues, etc.. that come with long term ownership).  

As long as your other partner doesn't look at you as a credit risk, you're reducing the risk placed on him by releasing funds to you, disproportionate of your 50% ownership.

Frequently you have to "pay the piper" when there is a change of ownership; or if a neighbor gets upset and rats you in.

If someone sold you anything that is not needed (home ownership) at a price you can't afford then you should consider renting or scaling down the items you own until it is financially balanced and you can afford that item.

That would be an effective way of defining/keeping your sole ownership of the property.

At that point it seems it would be the same as fee simple ownership.

The financed property limit applies to the borrower's ownership of 1- 4 unit financed properties or mortgage obligations on such properties and is cumulative for all borrowers.

This deduction will be under pressure as much as all others, particularly as the rental stock in the nation grows sharply with the declining home ownership rate.