Are you suggesting that because their expenses exceed income they are OK with having a loss? 

It is landlord-friendly, and specific pockets have gone upwards of 2-4x in the last 5-10 years.

So loosing a last name of the partner in the title would not allow me to 1031 I'f the partner cashes out; correct? 

This extra layer of protection limits the possibility of litigation and losses due to damages.

Moving forward--have full photo documentation of the damages and estimates to repair, and have the manager tell the tenants if they cannot pay in full or with weekly payments, (scheduled to be paid off in full BEFORE the last month of the lease) the management company will move forward with legal action.  

Airdna would be beneficial for you to learn the booking lead times of your area, which would help you know when your property is not getting booked or people are just booking last minute.

What happens if he mismanages it and you end up losing money - do you split losses 50/50 or do you get your capital returned 67/33? 

Demand proof of payment on every unit for the last year.  

I have spent the last 2-3 years building this financial moat in hopes that we could start our REI journey.

Also if you arent a warning incase you see the taxes paid last year from a primary owner you may have to pay more as you wont have that deduction in property value. https://www.phila.gov/services/property-lots-housing/propert...