This way your end buyer investor will see exactly what you're pulling for comps, can go over them and show you what their objections are.  

There are a lot of parameters, but either the property fits your objectives or it doesn't.

"There is no objection to the use of the HUD - 1 in transaction in which its use is not legally required." http://portal.hud.gov/hudportal/documents/huddoc?

You might need to explain your investment objectives to them.

So you might find it tough to gain traction in investing with what you have to deal with in overcoming her objections. 

I say this because it was at a similar stage that we got "shiny object syndrome" where we got bored with the same old, same old of buy-and-hold. 

You need to spell out before hand exactly what are the objectives of the partnership, what happens if a partner wants to back out, how the income/expenses be split, etc.

Yeah if your condo is negative cash flow you're spending money to service your obligation while your equity is being taken hostage with only tax advantage paper loss, equity gain/loss = gamble, neg cash flow, and perhaps a bit of loan amortization each month the mtg payment is made.freeing up that equity my be a better bet, agreed.

It's an objective and subjective process.

Again, its a personal preference and depends on your goals and objectives.