Landlord: Focus on applicant criteria, vetting potential tenants, thorough lease agreements, outline tenant expectations, perform regular walk throughs with tenants, and use web-based rent collection and maintenance requests. 

I assume your lease outlines the tenants responsibilities for caring for the property. 

You are "able" to do anything you want with your 401(k), but you do have to adhere to the rules outlined by the tax code. 

I'll outline the exit strategies and division of profit/loss options below.

If you are planning any of the transactions outlined above, I highly recommend you contact a professional such as an attorney who can ensure that the structure is set up correctly. 

I’d proceed as outlined above.

The owner said that it has been mis-managed by a property management team who was new and were not able to successfully stabilize the occupants and it has been at 50% for longer than the projections and business plan outlined.

Many of the same reasons you outlined are why I have been intrigued by GC in particular.

@Ashley Abramson this should be (or should have been) included in the original partnership agreement with other unforeseen items like death of a partner, divorce etc. if it is not outlined int the original operating agreement, then you should contact an attorney.

Best of luck to all of you :) I love how you outlined your thought process!!