@Ben LeeIf you can move the equity to another deal that makes you more money then sell the condo and buy a SFH. 

Are you ok with giving someone money and losing some of the control?

Now we do 20+ flips/brrrs per year and raise money for them.

Where would this rent money be, if its not in a bank account?

Aggressively pay off the mortgage and save a lot of money on interest.

Its easy for a contractor to spend your money and say replace things.

I have sites you can purchase where we can 2x your money in less than a year all cash through zoning and entitlements.

I was also told that the LLC interest has to be divided based on the capital contribution and cannot be divided based on the work, for example it can't be a 50/50 partnership if one puts all the money and the other does all the work.Any additional insight or leads would be helpful!

The best it can do is wash out your current payments from the DTI calc. 

CA investors still make money.