Additionally, if your partner has $0 funds and you have 100% of the funds that would be used to purchase the home, you can use your funds as well and not have to count them as a gift, so long as they are in your account and fully seasoned by the time you buy the property. 

After some thinking, I was initially wanting to sponsor a real estate investment deal via private capital funding.

There is the "delayed financing" option but the issue you will run into is that if you did not season the funds from the personal loan into your account for at least 2 months, the loan will preclude you from the exception and you more than likely will need to wait for the full 12 months to season the ownership to be able to use existing value rather than purchase price. 

I agree with Corby.if it is cash flowing well, why get rid of it.I am growing my portfolio by adding rentals with occasional flips on properties I don't think are well located or have some good cash return on them for funding additional rentals.

If you are trying to use the "Delayed Financing" exception a couple of things you should keep in mind, #1 you must have paid all cash for the property (no borrowed funds for purchase) and no liens on the property #2 you can use the maximum LTV allowed for purchase of property (ie. for an owner occupied property 97/95% LTV or non-owner occupied max is usually 80-85% LTV) #3 must refi within 6 months of purchasing the property (so for the most part you are going to use the purchase price plus improvements rather than the new appraised value) #4 property will have to qualify condition wise within the lenders guidelines, so no major work should be outstanding like broken windows, holes in the roof, ect. 

Currently, I'm depositing my reserve funds into a generic savings account.  

I understand that many people in the BP community will either source loans from non-bank lenders or partner with someone who can fund the deal for interest (or even equity ownership in the property). 

Plus it helps fund the next acquisition and the next and so on.

I've decided to look up properties in a specific area that are tax delinquent to develop a list I could cold call.Direct mails seems out of the question for now until I get a few deals out of the way to fund a proper campaign.My process is as follows: A) List all properties that owe a certain amount in taxes where I feel there may be motivation to sell (ex. 8k owed & up).

I'm a big believer in index funds.