Find a new friend.I would get rid of them for just one of those issues.

Quote from @William Dorrough: I currently either purchase and value add large scale multifamily properties or develop, and build ground up my issue with scaling is we have done this without brining in investors i have a great deal flow with a good track record im really looking to do more i have the capacity but have the need for more capital in one way or another  Scaling without investors can be tough, especially in multifamily.

.: Quote from @Jay Hinrichs: Joe I think one of the issues with rentals that need to be fed is how people have such a fixation on ROI and leverage . 

It's usually the member/borrower's creditworthiness that is the issue and interferes with approval, not the LLC. 

I could probably rent the house as-is but I would hate for it to be an issue if there was ever a fire or something drastic.

There's a good chance the issue(s) you face has already been discussed and answered.Ask questions in the appropriate forum.

.❌ Emotional Stress – Handling tenant issues (especially late payments or evictions) can be stressful, especially if you live in the same building.Hiring a Property Manager in ChicagoPros of Hiring a Property Manager✅ Less Stress & Time Commitment – A property manager handles everything from finding tenants to collecting rent and coordinating repairs.

That being said, the structure will matter, especially if any Pref or cashflows to you are being structured as a return of capital vs distribution vs something else.

(Property Meld for one)--- Owners often think a PMC can just enter a tenant's home to make repairs, but don't really understand the potential legal issues of entering when a tenant is not home.--- Owners don't understand the percentage of maintenance appointments tenants miss!

I am on the Neighborhood Building Owner's Alliance weekly calls, and we had this ADU issue come up.