If you make the person an LLC employee you can get around it, but partner does need to be careful. 

Working with Batboys LLC .

To get around this some folks will purchase the vehicle in an LLC and then sell the LLC, and this is not breaking the agreement.The same thing would apply here.

The main reason cited that as a small property owner, not using PM's, if anything happens, the LLC and you will be sued anyway.

Also, if you form an LLC to hold the property, you will need a designated agent(attorney) in that state. 

I'm looking for advice on a situation with an investment property my business partner and I purchased in June 2024 under our joint LLC in Springfield, OR.

My vision is to bring together motivated people to support one another and potentially form an LLC for group projects as we grow.If this is something you might be interested in, I’d love to chat more and see how we can help each other on our journeys.

In a situation like that, if the market is right and the research is right, you're earning essentially everything you would in just owning the property outright, other than the fact that you won't get the tax benefits (but your LLC will). 

@Andy Nathan Thanks for your input, I will have to look into what goes into forming an LLC with an equal 50-50 partnership. 

Once an LLC is in the situation, it is a whole new world.