Maybe commercial real estate hasn't appreciated at the same rate as residential has in the last two years, i.e. there might be more upside in commercial than residential. the other reason, would be that my capital deployment and time are better suited for bigger assets while still being in the average price. for example, i might be willing to invest  400K as a down payment, the 400k would get me a 2 million home, which is way above the 450k average home in my area, while 2 million might be the average office space which is much easier to find, buy, rent and then sell vs the 2 million home. what do you guys think, am i thinking correctly about the justification between residential vs commercial?

Give them your reasoning and justification for that offer and show them your data.  2) if they don't accept that offer, offer to help find a buyer for the deal at no cost to them (i.e. sign an option agreement for the property - then go find a buyer) 3) If they don't go for either and they have time to wait and the property is in good shape, offer to send over your favorite realtor that will help them get the most bang for the buck and arrange a referral fee or a marketing fee from the realtor and 4) put the seller on a follow up campaign and make sure you stay in front of them every 30-45 days for the next 12 months.  

So, folks who would reply, if you are selling properties in the area you're recommending, you need to include a justification as to why you think this is a good area to invest.  

I am sending tenant 60 day notice with "Check box" options but didn't think about sending comps as justification.

For income, you can consider the 3x of the rental rate “household” income and consider both tenants together, but I wouldn’t use this as justification to abbreviate your application process.

Always create competition.BTW I completely agree with others there is absolutely no justification in including your prior assets in the new LLC unless the investor kicks in an equal amount of their prior assets.

I guess the justification is that there is some administrative work (review permits, inspect the site, rerun credit) that the company must do and therefore they should be compensated for that fee.

But what services could it perform that would provide a business justification for paying all of the profits from A and B to Master LLC? 

Most people would agree that in smaller businesses, a disgruntled partner is never a good thing.But you seem to be looking for some type of justification, or at least an agreement from posters on this forum, that your partnership situation is unfair to you.

For this particular situation, I'd agree with @Daniel A. have a contractor quote and based upon that, you could make a significantly lower offer to them, with a full justification why.