Unfortunately, I was involved in an auto accident late last year which is forcing me to be medically seperated from the military and I will likely relocate to Texas near family. 

You can 1031 exchange if you like into non residential (commercial or NNN etc). 

I can't count the number of foreclosure sales I've attended that had short sales under agreement, short sale approved, just waiting to close and the bank slammed the door on it with a foreclosure.Because MA is a non-judicial foreclosure state and the banks are not required to disclose anything about the pending foreclosure, other than the public notice, it's nearly impossible for a short sale agent to know the status of a foreclosure and how much time they've got to get the deal done.

if private money forecloses due to non payment... forgive my naivety. 

If using a lender this is a non issue.

Non-occupied conventional loans will typically require 25% down.Again. discuss this with your lender and be honest about your intentions...they may have a work-around. 

Good luck with the medical...that whole process is frustrating for sure, but they are better about it nowadays.    

Lenders know this, so rates on non owner-occupied loans are higher than primary residences or second homes.  

If one partner puts in more money than the other, you could change ownership interests, you could treat it as a loan, you could reduce income/profits from the non-contributing partner until the contributing partner is paid, etc.You will want to discuss with each other who will be doing what management functions and whether that is worth anything to you both.

Even non-recourse debt still leaves the asset at risk if you're dealing with an inexperienced or unknown syndicator/sponsor.