"If we control our downside, the upside will automatically take care of itself."

I'll bet you can replace the lost revenue {much} more cheaply buying another 4-6 unit.What is the zoning for the area (not just your lot)?  

Their greediness actually lost them the income during the vacant months PLUS the extra $100/month the old tenants were paying (I bet they'd still be there if they only raised $50-$100). 

I understand the title would change and legalese blah blah, but eventually the silent partner could just be basically given (eventual) control of the LLC no?

Remember you don't have to own a property to control it.

LOL  For instance:https://www.naca.org National Advisory Committee for Aeronautics (NACA) NACA nascent polypeptide-associated complexNational Animal Care & Control Association www.nacanet.org/National Association of County Administrators | icma.orgYou get the idea by now...

Will people who live in the property (homestead properties) be a poor bet that they will allow it to be lost at the county tax sale?

His contacts(sub-contractors) were great, he controlled the costs, and I benefited greatly from his experience and willingness to share.

There are so many variables that play into it and out of the company's control. 

HI Matthew,Intent to live and you're living there is fine if you have to relocate the bank will understand the 12 month rule from FHA is only your intent to live there 12 months + but if you need to make money and need to relocate that is fine (convert to rental upon vacating).No one can control their future 100% so if you get a job opportunity in another state and have to move it will be a make sense scenario to vacate your current primary to move your your new job.