Have AT LEAST a year's worth of a cash runway saved before making the jump.

For your example, making the basement fully operational as a livable space seems like a great value add.

Last year, Partner A passed away, and their spouse (Partner A’s Spouse) inherited their 50% ownership stake in the LLC.

You don't get that with a fixed percent profit sharing.I definitely left out a ton of information with the goal of not making this a lengthy post.

I was in a similar situation.  

A couple years ago, a Costco delivery man came to my primary residence and my dog bit him. 

This is a hard one for people to work with since a lot of investors that do not have a lot of experience do not want to get a deal, not know the full rehab, and fear that they will lose the deal/EMD. 

She took a major loss.

Do you get a benefit for allowing the tenant to have the dog, such as a pet fee?

There are a few options.1.