So, let’s give a big round of applause to the RentRedi team for this incredible achievement! 

Would you recommend this?

@Don Konipol Elevation, Palmetto and a couple of others do this for SFR owners.

How do I solve this.

However, this will require sacrifice and having a duties of a landlord.

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

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. 

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).

We didn't end up going this route on our remodel, but there were 2 designers we talked to who do everything virtually which saves a ton on costs.

Thanks everyone for your input, this is all new to me just starting to investigate this market.