"I thought condemning the property results in termination of any associated leases"That may be true but I would doubt it.

Depreciation is not factored into cash flow calculations, you are correct.It's going to be tough to find a true 1% deal on the market, and it has been for a few years.

But a true income statement will also have "below the Line" items like depreciation, debt service/interest expense, maybe partnership level fees, etc that are not driven by the property operations.  

(I know sounds too good to be true)The property has a 10 year tax abatement since it is new construction in Philadelphia therefore I only pay about 16/month in taxes.Final monthly payment: 1550Estimated Rent 1800Cash to Close: 10k~30% yearly return.

That would have been the easiest and cleanest way I believe.So with all of that said (hopefully it makes some manner of sense), how can I keep track of each property's true balance and when each property has fulfilled its debt to the HELOC and we can start splitting the cash flow 50/50. 

Bouncing off of what @David Clinton III said because it's absolutely true! 

What your family co-signer is saying is true.

That would have been the easiest and cleanest way I believe.So with all of that said (hopefully it makes some manner of sense), how can I keep track of each property's true balance and when each property has fulfilled its debt to the HELOC and we can start splitting the cash flow 50/50.

I also assumed no closing costs but that is probably not true.

I heard something about some law requiring you to live in a home a year or so before being able to rent the whole thing out do you know if that's true?