If your goal is to own the property yourself and you need the down payment money you could bring on the other party as an investor only and pay them a preferred return of say 6-8% and not as a partner.

I assume there are 3rd party companies for this, wondering if anyone on here had any experience in this field or had any recommendations of someone to talk to in the Phoenix area.

What are the drawbacks of having tenants pay me via ACH directly from their bank account and not bothering with a third party software like Cozy?  

There might be more subtlety to it based on other agreements (like the Deposit to Hold agreement, among others) that could modify this, but if you have an executed (signed by all parties) lease and nothing has nullified that, then both parties are obliged to follow it.

Also make sure the borrower is insured himself and you being put on the policy as an interested party (if I’m stating that right) in case something unforeseen happens to the borrower, you would receive a check from the insured’s insurance company 

BUT, to have a third party between you, and whomever your tenant will be is KEY.

A qualified intermediary is a third party entity or person that facilitates a Section 1031 exchange, often a trusted real estate attorney.

I really like to have a personal connection with the people I work with, as I find the process goes much smoother and both parties get the most out of the transaction.

At my properties I do not allow smoking, pets, or parties.

An attorney would decline to represent both parties in the transaction - as it would violate the right to independent counsel.