Unless your partner has some type of leverage or a good reason why its 50/50 ownership and not the same way on the funds,  I dont see this as being a good situation for you.

Even with 2% deals which I hardly ever see on multifamily I'm still hesitant because of the amount of competition and offerings from large high end complexes owned by institutional investors that are satisfied with 6-7 cap rate properties.2% deal on SFR are hard to find, but it gives me time to save up and avoid long term leverage on my rentals.  

How would you recommend leveraging that equity?

Especially with Skype and all of the other technology that we have today.

We look at cap rates and how much our leverage money makes.

Leveraging is a good way to buy multiple properties, create more tax breaks through interest deduction and create larger cash flows down the road.

30 yearIf you want the cash flow and plan to add many more properties.15 yearIf you want to have the house paid off in 15 years to reduce leverage and have a higher cash flow. 

Cash out-refit could have the same result, a leveraged property, but with one I have cash now, with the other I'm just protecting the investment I've already made.

So to summarize leverage with a loan gives you the ability to stretch the cash further, increases returns, and spread out risk among a portfolio of properties.Many other benefits and with leverage you have to buy right.

My husband and I live below our means working full time with a W2 salary to buy as many houses as possible leveraging our money.