I appreciate the belief in instant success in RE in Colorado.

All tenants are equally responsible for the condition of the house and getting the rent and utilities paid. 

Having partners complicates things as the buying entity for the replaxememt property typically has to be the same as the selling entity.Two basic rules for the 1031....ALL proceeds must be reinvestedThe purchase price of the replacement property must be equal to or greater than the sale price of the initial property(less actual selling costs)@Dave Foster knows all this stuff, and any possible exemptions.

That tells me that it takes someone 3 flips to equal the gain that I get from one buy and hold that I 1031 to keep the tax deferred. 

If they are VERY professional, they will have their processes in writing as verification that it is enforced equally and fairly by their entire staff.6.

However we have always split the cost of everything equally (rent, groceries, utilities, insurance) regardless off my mounting debt and the fact that I make significantly less money than him. 

Dominic,All else being equal, from an insurance standpoint you may want to deal with a General Contractor. 

So, how does $390k minus $225k equal $50k in equity?

It would be easier and simpler if both contributed equally and jointly, such as financial and work.

The note owed back to you is equal to cash plus lot's value.