The partner is in the deal for the same reasons I am- to minimize risk on the first investment property as we learn.

But I’d take my outstanding debt on the property from $258k to $420k.... this kind of scares me, but I know if I can keep this rented my risk is minimized while I lay down the debt.

Don't waste your time. 

Every time this happens, we have to see the judge and waste another 4 months.

If you look at this guy's kitchen, while it's nasty in terms of filth, he doesn't have wasted perishable food just strewn around.

I was under the impression there are a lot of ways to purchase a home without 20% down.I'm also concerned with wasting time at a local big bank to get rejected.

Created a nice short term note with minimal invested.

I'm wondering if right off the bat, I should stay away from big banks like Wells Fargo (my primary bank) and not waste my time. 

I'd suspect that Cozy's primary drivers of revenue are - minimal interest made during that hold time, people paying for faster transfers, the tenant insurance they offer, and the tenant screening services they offer.And then there is that eventually switch-flip that surely is going to happen when they hit a critical mass. 

Minimally there are hard money lenders that will refi inside of 6 months.