So I then get a follow-up call.

I will then use my current home I am moving out of as a rental property. 

Potentially even visa versa since putting a few short term rentals would immediately generate some income and then sell off the parcels either with or without an income producing rental already in place.

Dissolving the LLC and distributing the property to the former members as tenants in common and then selling is a relatively common practice in these situations. 

If loan balance is $300k and it's worth $400k and an equity partner puts $40k to bring it current then they have about 40% of equity in the property - now they would not take straight $40k as probably more costs involved.

If by selling this great deal you are just paying down your principal of the home then it wouldn't make any sense because your payments would stay the same.

Since then I’ve been leveraging my way to generational wealth with “good debt.”

Its much harder to turn a property around in 6 months expecting to have 100% of your money returned back to you - but if you focus on the right property focusing on highest and best use with an ADU add (like mentioned), in-fill/lot split, or other rehabs - then hopefully a semi-decent property like that will perform like a champ in a few years. 

Then when it’s sold everyone gets out.

The right PMC can help you find properties, rehab them and then rent them. - We call this our "BRRR Turnkey" Program.