For example if you open a LLC in Nevada but your business if located in Colorado then Colorado will have you "re-register"  as whats called a foreign corporation (a company that was not originally incorporated in Colorado) "foreign corporation" or LLC will subject you to all the same taxes and fees as an in-state company.

If you want a partner, I think the partner would need to get the financing in exchange for you doing all the legwork with the flip.

I would be very much willing to learn, maybe exchange of knowledge?

The investor gets 100% of cash flow from the rented side and pays 50% of expenses.Essentially this is double leverage and in-house management for the investor in exchange for credit approval and equity share for my friends.Does this seem unreasonable?

I think a point that drives home your post is the fact that you don't have to pay taxes on that appreciation either if it's your primary - not the case in rental properties (even though you can do 1031 exchanges). 

This is all very foreign and confusing to me.Also, the vast majority of the seller financed properties I am finding have a balloon payment after a few years.

There is very active discussions on handling reservations, screening, taking credit card payments, handling foreign reservations, gift baskets, how to manage the locks (high turnover so keys are a problem), cleaning and maintenance ideas, etc.WARNING: The list is mostly about the operational aspects of a VR business.

What does a 1031 exchange do to the delay of the tax benefits and the depreciation?

I was thinking a $40k buy-in, in exchange for equal (1/3) partnership.

If you create the entity in NV you will still have to register it as foreign entity in OH.It rarely makes sense to have the kind of foreign or tiered LLCs gurus push.