@Denise Parent, Like everyone said, if you've lived in that for two out of the 5 years prior to sale you'll be able to get $250K of profit tax free (your husband won't meed the residency or ownership test). 

You could learn how to Masterlease a building from an owner and sublease to your tenants which creates cashflow without ownership.

In this example,  my friends IRA does not get any benefits from ownership or depreciation, so we keep those benefits.

When investing in a property using a partner, how do you split the ownership/equity in the property if the other partner provides all the cash while the other partner provides all the knowledge and hustle?

@Jordan Noble  I don't want to speak out of school, but the question on your splitting ownership on the property is best answered by a title agent or real estate attorney, but I think you could have a Quit Claim Deed Prepared adding your partner as Joint Tenant (I would double check this is the best way to hold title). 

They set the budget, which is then split up among the units depending on ownership interest.

I don't think ownership changes hands unless they abandon the property.

If you know about the active participation rule and think you can meet, and meet the ownership rule, which you meet, yes, both of you can claim the activity as active participation real estate activities. 

It could easily be interpreted that the product you are selling is the purchase of their home.Consider working with a list broker who can make some suggestions of new lists for motivated sellers that don't rely on public data and are therefore exempt from the rules that you are running into with the tax records.One such list is Owners with Low Financial Stability Scores (FSS), another is Seniors with Long-time Ownership.

Ownership reverts back to the landlord with full rights and the leasehold estate no longer exists.