@Nold R.In addition to the great post from Dave, possibly consider an option where the property is taken out of the LLC sooner rather than later and held as tenants-in-common prior to the sale, possibly setting you up in a position to take your share of the proceeds and individually purchase a replacement property via 1031 exchange. 

Why he is so intent on bashing me, not sure. 

If you want to sell a property and keep deferring that tax by NOT recapturing the depreciation, you can do a 1031 exchange where the proceeds are held by a licensed intermediary for a short time while you identify and close on a replacement property.

You may be paying more on a fixed HELOAN if you are not using all the funds from the proceeds.

I am proceeding to purchase a duplex in Dutchtown. 

If it is deeded separately, maybe you can fix that, sell it and then use those proceeds to pay off something to owner #1. 

After listening to him talk for close to 45 minutes, I finally said that if I have an extra $18,000 to $35,000 wouldn't I just invest that in my own property and get all of the rental income and if I sold the property 100% of the proceeds, not 50% of it. 

You will have to pay for an appraisal to and depending on what the value is it will be up to you to determine if you want to proceed or not. 

But they will allocate their proceeds so that equity is concentrated in one of the replacement properties. 

If I want to make an offer on this property, how do I proceed?