Our current market (Phoenix metro) is overpriced for flippers or fix to rent but I am on the lookout for a wholesaler that is finding deals that pencil in our market.  

I am sure properties on the water have lots of potential. 

Besides the  depreciation,  tax  benefits that I would get if  I was renting to him are there there any advantages on co-owning instead of  me renting to him?

If they are satisfactory, implementing the changes I’ve suggested could take them from “good” to “excellent.”Conclusion: If you’re advertising on Google, make sure your landing page is always up, running, and fast.

It has so much traffic and popularity just 2 hours of being placed on Zillow.

And you could also do a 1031 exchange on the rest. 

We used a HELOC on that property for a down payment and some renovations ($285k) on our now current primary residence.Our rental property has a 2.99% rate and rent cash flows over $3k a month.

However, the money needed to start real estate investing depends on several factors.

I think you're spot on here.

So many of us have a lot more on the plate and get it done.