@Joe Splitrock, good point at least the portion used for personal use would not be deductible (the student loan pay off). 

If there is an ongoing hardship, there are other options on top of the payment deferral such as deferring a portion and doing a loan mod. 

Currently we are relying on the partner to find the deals through his network of wholesalers and auctions but he is not jumping at the opportunity to share those contacts with us since that is a large portion of the value that he's bringing to the table.My questions are as follows:-Is it worth it to set up a funnel similar to a wholesaler to find direct deals for flipping?

@Chris Walerysiak That's smart, I helped an active duty client last month close on a 4 unit property, where he used his active duty income, his side hustle income, and a portion of the projected rental income to qualify.

Sale costs = 200k, mortage payoff = 200k i.e. 1M went into 1031 (B) (where it is now)I will have no personal income myself in 2020 tax yearMAJOR question is this:When it comes to calculating the gain, regardless of the gain amounta) Because of zero income in the tax year of the sale, do I qualify for 0% capital gain tax rate for the federal portion?

If you don't mind reading this as it's the entire minimum payment portion of the contract but I am hopeful you're right and will keep you updated on this once I close on Tuesday. 

So you would not just need income to cover your portion of the rent, but also enough to cover 25% of the second units rent.Hope that makes sense.

Half way through the loan, the principal paydown gets faster, so they are trying to point out that every month you own a higher portion of the property than you would with a brand new mortgage.CommentaryIn my opinion, that is a lot of brain damage and not great returns for $75K out of pocket and only $10K of equity capture at the start. 

Tax benefits from your equity portion of the deal depreciating3.

(I asked them to fill out only the background check portion instead - waiting on it to be returned).They indicated they are okay with with security deposit and rent I specified, and with the terms of a 1 year lease.