My thought process is that this would be an equity play but am worried that I would be handcuffing myself for future investments.Option 2 House Hack with Partner: My friend/ potential partner is looking to do the same thing.

You may also meet someone  that could be a potential business partner. 

More on my first investment, this quadplex is a fixer-upper and has the potential to add 200k+ in equity with about half as much invested.

Alternatively, you could potentially try posting about their swap opportunity on facebook groups or a simple google search of Home Swap websites could also yield results.

Your loan probably technically doesn't allow this because there is a "due on sale clause" but I have never heard of a loan being called as long as it's being paid My advice to you would be to screen potential property managers, read reviews then set it up to be managed by them. 

One of the risks here is that you can potentially have a nosey/disgruntled neighbor who would go as far as to file a complaint with the local building department.

You might also meet someone that could be a potential business partner.

We have a potential deal in the works that has a business on the first floor and apartment upstairs. 

Potentially fix and flips.

You ideally want a paper loss to minimize taxes and potentially even take it further and apply the loss against other income you have as Bill mentioned in the comment.