Use the cash out as down payment to buy another property in San Diego.  2) Sell the property to do 1031 into a bigger and nicer San Diego property.  10% of proceeds will go to renovation, agent fees and etc.

Security deposit amountYou can find plenty of examples by searching for "tenant estoppel certificate doc" or exchanging "doc" with "pdf" for more options.Here is an example and explanation: Sample EstoppelSome have a lot of legal jargon but this document does not need to be so detailed.

I like the idea of selling shares to pay down the mortgage I'd have on it or use it for the next purchase, maybe a 1031. 

I am looking to vacate the house and prep for a 1031.I previously had the property listed, got under contract just for this tenant to be the reason we didnt make it through the inspection period.I have a good relationship with her but she is a mess, pays late every month (including her late fee, she is current), police visits, etc. 

That is like 1031 Exchanges that you can do with a good Title Company who has that Department.

Can some of the members of an LLC do their own exchange or cash out at the time of the sale of the property?

I had signed up for a 3rd investment at a very early stage for another 400K thru a 1031 exchange.

I also know that doing a 1031 exchange will enable us to carry all of the proceeds from the sale as a deposit on a new property.   

Tough to beat this answer from @Michael PlaksYou can also check out these two recent posts that walk through Section 121 Exclusion and 1031 Exchange guidelines and strategyHow Section 121 Exclusion and 1031 Exchange works: https://www.biggerpockets.com/forums/51/topics/1195208-1031-and-sec-121-experts-want-to-sell-rental-but-tax-worried What not to do if you don't meet the requirements for Section 121 Exclusion and 1031 Exchange:  https://www.biggerpockets.com/forums/51/topics/1195383-5k-for-cap-gains-tax-opinion-quote-that-reasonable ...

A 1031 exchange, an installment sale, and a Delaware Statutory Trust (DST) are just a few.