If the remaining tenant stops paying in full, would I initiate the eviction process for both tenants?

I have gotten accelerated depreciation that has exceeded my initial investment.Now add that you could perform a value add to create some sweat equity. 

@Ryan Fox some great info here, but while you are correct that a service member assuming a VA loan restores eligibility to the initial veteran, making the deal more attractive, it is not strictly true that a veteran can only have one VA loan.

However, passive loss limitations apply—if your AGI exceeds $150K, you may not be able to deduct the full loss in the current year but can carry it forward to offset future passive income.Future Considerations: If the property generates taxable income in later years, Kansas allows a credit for taxes paid to Missouri, but since you’re reporting a loss, this doesn’t apply.

Initially we did a light renovation on the rental unit and a larger renovation on the 1st floor.

My initial plan had been to do something like Rent-to-Retirement or REI Nation- assuming that I'd be leaving money on the table to pay for their expertise, but hoping that I would learn through the process and develop the confidence to strike out on my own later. 

It's not clear in your post how heavy of a lift these entitlements are but assuming value is being created before a shovel enters the ground the initial LP investors will want to be compensated and share in the upside that's been created.

As a management company, we also have a duty to get a property occupied with a qualified resident as soon as possible and sometimes that means adjusting rents down for right now to generate revenue.  

Super nice looking home, very cool, in a location and lot not conducive for revenue generation that would make it make sense. 

However, on my tax returns, I dont break down the income by property or specify how much each one generates, just that my LLC earns revenue from management.