It has approximately $200,000 in equity and currently cash flows about $1500/mo ( we split this cash flow and equity 50/50 with my mother that is my business partner).We have 3 kids and the oldest is about to go to UTK for college.

We had a split level.  

Split the lot into two lots and built a large 6 bedroom 5 bathroom house on one of the lots.

Assuming everything is split 50/50 what are your thoughts on taking the cash and reinvesting or working the BRRRR method.I know that was a lot.

I will be also partnering with other investors to purchase another 40 properties where we will split the profits.

Normally a lot of people will just flip a property and split the profits 50/50 but even tasks can be split.

If we were to split like this on our current development, our engineers would collect 25 to 35 times as much as we paid them on a straight up fixed cost contract. 

My Borrower moved his company to Delaware making it an LLC there which makes me a bit worried that he might try something and try to get out of the loan by splitting the llc .

I still house hack by splitting my house into two units. 

No way is this a scheme to keep EM for the seller..Anytime I have had EMD disputes it usually gets solved with a 50 50 split since I know what will happen.. what happens is exactly as you describe.. money is to small to realistically hire an attorney to collect..