Would you also say that a possible reduction in rent be adequate to compensate for the tenants trouble, or no?

Best case is to sell each with adequate time to identify and close on the 30 door unit.

Third - get an attorney involved, no money changes hands outside of closing, and make sure you have adequate hazard insurance to cover the property in the event it burns to the ground the day before you put it on the MLS to sell. 

Whatever you decide protect your assets with adequate liability insurance.

I'm hoping to have an adequate down payment so I can buy another property between November and March.I've used either an accountant or turbo tax. 

Whether or not you set up an LLC, having adequate limits in place will help keep a claim out of your assets.  

Karen is also correct in that you will need to make sure the framing for the attic space is adequate for a habitable space.

Being that I plan to use a property manager, how do I keep myself involved in the process adequately without stepping on toes?

When working with partners, like yourselves, each of you would need an umbrella policy to be adequately protected.

You want to acquire a property that requires little work in which limited risk is assumed that cash flows adequately.