I just want a passive investment and would partner with a strong operator.

@Nicholas LIt appears that you are conflating costs and expensesCost is typically a one time event while expenses occur on a daily basis for line items associated with the operation of the property

Originally I wanted to operate a personal care home, however would much rather rent the home to an operator with hopes to negotiate higher rent.

We check all this boxes. in which area do you operate?

Having an operating agreement with protections for you are essential, and making sure to run good numbers and having a solid plan in place are what you'd need for this to work out.

Buy a cheap house in a tough area, the numbers on paper may look good, but you will have higher operating costs and more headaches (generally speaking) as opposed to buying a solid house in a good area.

Make sure you build a team of your CORE 4 in whatever state you invest in such as getting a reliable realtor, contractor, property manager, and attorney.

My operating assumption is the Milwaukee real estate prices will double in the next 10 years, just like they did in the last 9.

Until you have experience in partnering with others on successful projects, I highly recommend working with your partner and an attorney to structure an appropriate, legal, and viable operating agreement, be it in context of an LLC or otherwise. 

Move it to a new LLC to avoid old potential issues.You will both be members of the new LLC with percentage ownership.Have an attorney draw up the LLC Operating Agreement and be sure YOU understand it.