The LLC is irrelevant unless you are paying cash or getting a DSCR loan.

You can tell the tenant that they can ignore the notice as long as they follow through on paying.As the landlord you want to maintain control of the situation - not allow the tenant to do so.

I have a good cash flowing portfolio that has appreciated extremely well In the last 10 years, it’s a small college town off the radar,   and I know it’s a unicorn situation to find deals that are in markets set for great appreciation, and have solid cash flow, but I know there’s more out there! 

if someone needs to borrow a few grand that's a pretty shaky situation.. 

This is really a lot of information packed into a densely worded post.Yes, you can use loan proceeds to buy out another member, but it doesn't seem like you'll have enough to buy out and develop.

I love doing these types of deals—not only because most people avoid them, but also because it’s rewarding to help sellers in these situations.

Talk to a trusted lender (preferably local) about what loan options are available to you.You can absolutely find some solid SFRs or even multi families around, but the cash flow on many will be lower the first few years, unless you are willing to do some value add work or buy in distressed areas with less expectation for future appreciation or price stability.If the goal is to have value down the road to cash in for a pivot, don't forsake appreciation for maximum cash flow.

Somewhere in the middle is likely your best bet for a 20 year timeline.I have almost 50 units here myself and that's about what my portfolio is cash flowing at this point combined LTV is around 65% as loans have gotten paid down and values have went up.

By definition, these type of loans are not the same quality as what is traded on wall street. 

Use Real Estate By the Numbers as your guide, make sure it tracks the loan pay down and depreciation and have all of those numbers pour into a Schedule E.