I don't want to be shady, but the sole purpose of the second party would be to fulfill the occupancy requirement--my ultimate goal is to retain sole ownership of the property over the long term.If removing a second name from the loan required an outright sale, I'll need to figure out a way to structure that transaction to avoid borrowing from an institution which would trigger the occupancy requirement (private money lender?).

You retain the % you want and stay on as the LLC Managing Partner.  

There is no actual door in this location just a cut out in the wall that leads to the bedrooms.  

The two individuals had built a makeshift wall in the living room and accused us of building it and renting the apartment as a "rooming house" which it was not and never has been.

Other than the problems I knew and was comfortable with (including retaining wall, plumbing, electrical and other TLC work etc.), I found out that the house has sunk 2-3 inches in one corner (mainly due to poor drainage and that retaining wall giving up... both linked).  

on every surface (walls, ceiling in this 2 story garage) in thousands of " circular black mold blooms"The field property manager's reaction to the horrendous discovery?

The house is a little one bedroom, has water damage on the walls, lath and plaster construction.  

A revocable trust would mean he could make changes, a Irrevocable trust would mean once trust is set up he can't make changes so depending on how much power he wants to retain I would start with a revocable trust,, if he were to die it would transfer and become a irrevocable trust. 

The walls are colored with crayons, pencils, etc.

While it is nice to have the plumber come and do all of the plumbing at once and a drywaller come in and do all of the dry wall at once, it is better to get one unit done.