It's important to let the seller know about this upfront so they don't get mad about paying the realtor... or you could pay the realtor out of your pocket or just add a small amount to the sales price if your lender (if you are using a lender) will allow it.

Or said differently purchase twice the amount of houses I have been buying. 

It will teach you so much, has the best financing options, least amount of risk, and will let you know if you want to be in this business or not. 

FYI I do have plenty of reserves for my other units already, but would like to keep each property separate.My question is, where should I draw funds from to pay the least amount in penalties, taxes, loan interest, etc. from the following sources I have available:- 20 year 401k loan for a property- Sell a piece of my stock portfolio at 15% capital gains tax- Take a HELOC against an existing property- Private money loan from a trusted partner I have worked with beforeAlternatively, I could pool the reserves for all my properties to ensure I can cover anything immediate and know that I could always sell off a piece of my stock portfolio if needed and have the funds within 3 business days or set up a HELOC and only draw from it if needed.Appreciate any thoughts or what you have done in the past.

And in the modern era, real estate and stocks returned practically the same amount (within 1%).

Why not take his name off the LLC and put it in your name now while the LLC has $0 of value (or whatever nominal amount your articles of organization or operating agreement say that you contributed)?

For example, you could allow them to handle repairs below a certain amount without needing your approval, while requiring your input for anything above that.

Relatively small amounts of interest income ($1600+ per year) is the highest taxed form of income I have found if you have kids at home.After earning a few grand in interest, It takes away my child tax credits and gives me an effective tax rate of 70%.   

It would be a good 1031 exchange since we forced a good amount of appreciation.

So now we cover utilities for both units and the new tenant pays a higher amount too on the back unit to cover all the utilities with a great profit.