However, if I was a seller, I'd do that in exchange for some non-refundable money.In seller's defense, what happens if you change your mind, don't close and have two vacants (= ZERO income) now?

If you live in it for less than 2 years in a 5 year span and sell your looking at capital gains taxes unless you do a 1031 exchange.... some people leverage this incentive so you need to determine where you fall...or are you keeping it for 30 years?

I've been thinking about getting a partner to pay for the rehab in exchange for a percentage of ownership, but I'd hate to give up the cashflow when it's fixed up. 

Should I  1) hold onto the property and take equity out to reinvest in another real estate venture (leaning towards MHP) or 2) sell the property and 1031 exchange 3) contact the investors that are building around me and see if I can partner?  

First step would be to determine the value of the exchange and what that will buy you in the market.

If instead of selling outright, you exchange your property for some other real estate, known as a 1031 exchange - then you do not have capital gains and you do not create any room for passive losses as in #1 above.

So a 1031 exchange to another Real Estate deal may be the way to go.

After all, you may be chopping off resale value in exchange for cash flow - you are losing your garage. 2.

For example, a page of "recommended local partners" would be a great way to exchange links with other professionals in your local network. 2) In regards to penalization... it's not something you should worry about UNLESS you hire a company to purchase you backlinks, or utilize a Private Blog Network (PBN) to link to your sites.

That doing a 1031 exchange is simple.