First, talk with a tax preparer who understands the capital gains rules and ways to avoid them.I'd ask about Adding you to title now while he is living. 

Are you planning on living in it?

I currently live with my wife and 3 children, so I'm not sure this would be a good option for me.

- Are there areas that would work well as a mid-term or short-term rental in addition to long-term?

No additional costs in projections. 

I’m considering getting a 4 bedroom for 130,000 but want to make sure I can live in it and rent it out.

I previously lived in Katy, TX from 2018 to 2020 and observed significant growth in the suburbs.

There were two "living rooms" so I converted the smaller of the two into a 3rd bedroom with a 3/4 bathroom.

However, they are proposing dissolving that partnership and allowing original investors first opportunity  to participate in providing an additional 22% of our original investment, speculating a hold until 2026 with a 202% return on the new funds, resulting in a "blended return" of about 36% total return of our original+ new invested funds.  

Additionally, Allen county allows you to use the lesser of assessed values based on either the comparable sales, or the income approach.