Should you decide to proceed with such a transaction, it would be prudent to ensure that sufficient capital reserves are available to mitigate this risk.

I use Oregon's multi-family NW forms, but it's unclear to me exactly how to proceed. 

We each hold a 50% interest in the LLC.The values of each house are approximately the same, and there are no loans or outstanding debts.He wants to cash out so we thought a good strategy might be for us to sell one of the houses, and let him take all of the proceeds, and for me to take full ownership of the other one.Essentially, I am looking to swap my half interest in one of the houses for his half interest and the other one.

Just make sure you have your attorney ready to go to initiate a summary proceeding to evict as soon as they do not vacate.I would not try and drive them out with an unrealistic rent increase. 

Understand your risks and think through your worse-case scenarios before proceeding. 

We have started to think about selling the property and using the proceeds to buy another home in a more desirable area where we believe market and rent appreciation has greater potential for growth.

And then proceedes to give me a list of really expensive repairs to get done asap. i have repeatedly told her she needs to contact me whenever anything breaks or is in need of repairs, which is stated in lease.

Remember: Insurance companies want you to pay the bill and when it comes to their turn, will do everything they can to NOT pay.I would get clear on that piece before proceeding further.

.), and how much the cost would be.Then this way, I could decide to proceed or not based on the assessment.

I'd have interest in facilitating these types of deals and paying you that fee that's nothing for the value you are bringing if you really are. that's about 2 points on a hard money loan which isn't a lot, if you are flexible on payment structures we'd pay you out of construction draw proceeds each time we receive money we pay a portion of your commission back