As such, is the sponsor going to sell a deal into the free market and lose the added efficiencies on their PM side, or do they hold longer (potentially at the detriment of the LPs) to continue to help build scale?  

I am in the process of selling a house and should have ~$250K to utilize once it sells…One idea is to build an ADU at a family members house to get started with only some of the money and hope interest rates and prices continue to fall.

It gives you continuing education.

My question is: should I continue investing in small (2-4 units) multi-family or single-family homes?

Best of luck as you continue to grow your business!

I asked him what he thought about me continuing to pay down my mortgages which I have been doing for the past 3 years.

If the property has continued to appreciate, perhaps him buying you out at market value makes the most sense, then take the cash and roll into a new property.It sounds like you would like him to pick up another $500/month (pay you the $1,000/mo rent + pay 50% of the remaining mortgage split). 

We also have B properties and a couple A’s, but we will continue to buy C all day long at the right price!

As you can imagine they were displeased that they were served a 30 day notice as they just signed to continue tenancy on a MTM basis.

If you're planning to continue growing your portfolio, having an LLC is never a bad idea for that extra layer of protection.Regarding your decision between a HELOC and a DSCR loan, it’s essential to weigh how both options fit into your long-term goals.