Haven't found much resources on how to structure the deal whether to buy out partner's shares at existing basis (I believe this wouldn't be advantageous as I wouldn't get to mark the asset to market and lose out on depreciation) or open new LLC or S-Corp and buy out both partners (I would end up taking gain tax due to sale but would get new dep. basis).

How are you generating steady cash flow, benefiting from appreciation, offering tax advantages, and diversifying your investment portfolio?

Most of the horror stories I know of are either because (1) it was during the pandemic and tenants were taking advantage of it or (2) an exception was made on the vetting process when it shouldn't have been overlooked. 

The advantage to long term renters is the consistent cash flow, lower start-up cost.

The bigger and more diverse your business, the more cumbersome managing multiple policies can become.Administrative Burden: If managing multiple policies is consuming too much time or resources, consolidating may be a way to streamline operations and reduce the workload on your team.Negotiating Leverage: When your business reaches a certain size, you may have enough premium volume to negotiate better terms by consolidating with a single carrier.Final ThoughtsConsolidating your insurance portfolio into a scheduled program can offer significant advantages in terms of cost, simplicity, and risk management.

In fact it will more likely be advantageous to you. 

Reminder:Ground improvements qualify for bonus depreciation.This includes various landscaping.Roads and external parking areas.Sidewalks and pathways.Fences.Utility systems (including the installation or improvements to water, sewage, drainage, and electrical systems).Outdoor lighting.Rec facilities (like playgrounds, sports courts, and swimming pools).And more.It's a big category for depreciation/bonus depreciation that we love.

Here are a few suggestions on how you can maximize the wealth of information available: Check out the blogs and podcasts, or take advantage of the search feature (magnifying glass).

I am firmly in the paid off category less work myself..

But see if you can take advantage of sec 179.