I was actually thinking of splitting it and managing one myself that way I can gain more experience. 

@Cornelius Garland I appreciate the advice and being able to benefit from your experience. 

I’m only taking half of the profits, but I’m also paying for half the deal, working half the time, and have the benefit of added motivation to meet my commitments to both my partner and the business.  

The guy probably does have something going on in his life but that's his loss and your gain

If next year, I decide to 1031 exchange this rental property into either one or two investment properties (equal or more in value) would the amount used to pay off the HELOC be subject to capital gains tax? 

As @Quito Keutla suggests, there are many advantages you gain from getting access to the MLS. 

I just don't know realistically what the benefits would be on a relatively small portfolio or if my wife could manage it until it grows larger.2. 

So they can lend to LLC's, maybe ignore income...all sorts of benefits to these loan types.

I got a really low price, fixed it up, and gained over $100,000 in equity.

\Looking for any information on tax issues, Capital gains, the pros and cons of investing in another country, and where is a good place to start.The numbers just seem to add up a lot better in the US then in Canada.Thanks in advance "EH"