@Colleen SutherlandWelcome to BP!

Context matters, and there are steps you can take to protect yourself while still giving applicants a chance to prove their reliability.ALTHOUGH, still stay compliant with all of your states Fair housing laws, Always.

This allows us to consider the real estate cycle and determine the optimal timing to sell.

Apples to apples.

Meyers to discuss this nationwide and Lehigh was the poster child for massive subdivisions allowed to be platted without enough infrastructure to allow a full build out.. 

Extremely difficult to pass and I bet you didn't know that you had to get it reinspected again in three years.

@Becky Hoffman If one member of the LLC does not care to have any claim to the property as you describe why can't the partner merely be removed from the LLC.

I would assume that you'd just simply sell each individual lot to the developer at a set lot price such that your cost to purchase the raw land and improve it to buildable lots was worth the proposed profit per lot.  

Right now treating it as interest but would like to make it active income to do a solo 401k .

Selling some property to pay down high-interest debt is good, but also consider looking into ways to refinance or leverage your existing assets for better cash flow.