However, you will have failed owning the residence.Have you considered the LLC owning the quad-plex and you renting/owning aunit elsewhere?

They are not cross collateralized, but I am securing the loans and hence responsible to pay back the loans should the LLC fail to pay.

Don't buy unless you have that exit strategy ready to go (unless you are confident you have a plan b like selling for a profit if all else fails). 

My belief is that the realized that they had access to the education and to join me in the Partnerships but because they failed, it is embarrassing for them to NOT have made anything close to what we achieved in the last 10 years.

I had failed to do this and it costed me hundreds of dollars in repairs.

Hopefully he has also seen you deliver at work, and your willingness to roll up your sleeves and take on a task, without hesitation.many potential investors show up at meetups but fail to follow through or even have a plan.I'd suggest you take this further by developing a business plan and goal setting. 

If they are in search of an ROI, you could draft a not showing their interest in the property should you fail follow the terms of the note.

One failed test could take your whole house out!

Account Closed $60,000 loan in Michigan usually doesn’t fail the points and fees test so I am very surprised you are having such an issue. 

Property vacant for months , repairs not being made , failing CMHA inspections etc,  . .