This is a great way to start out for a million reasons.

How do I solve this.

This one will require moving several walls to reconfigure the space.

This family of three finds that they never hear back from the larger rental agencies even after paying for an application.

This helps in setting the right rental prices, finding quality tenants quickly, and understanding local laws.

This is completely appropriate - except that wasn't how I was going to use it. 

Haven't found much resources on how to structure the deal whether to buy out partner's shares at existing basis (I believe this wouldn't be advantageous as I wouldn't get to mark the asset to market and lose out on depreciation) or open new LLC or S-Corp and buy out both partners (I would end up taking gain tax due to sale but would get new dep. basis).

This may be the case to either leave cash in the deal or if you are unable to cover the payoff of the first mortgage, you may have to sell. 

Understood that some of the stuff on the listing is their proprietary information but this results in us losing all the reviews. 

This will be my first investment property and I'm a little leery about this whole out of state buying process since I've never done this before.