Their equity split – let's assume a 70/30 split – remains; thus, they still receive 70% of the profits.

This project reinforced to remain conservative with ARV and the importance of purchase price.

I used a house hacking technique, learned the term from Bigger Pockets, and lived in the property to satisfy the loan requirements before renting out the property.

The remaining balance is paid with your return.

Essentially, they drafted a resolution to the LLC, which stated that: 1) on behalf of the LLC, the members are authorized to execute and deliver resolutions, 2) certify that the following changes were duly adopted and are in force, 3) remove member from LLC in accordance with your operating agreement, 4) revert ownership interest back to the remaining member (you), 5) resolve that the removed member will no longer have any ownership interest in the LLC, and 6) then add the new member (your wife) in accordance with your operating agreement, transferring whatever ownership interests you desire from the percentage that you possess.

The remaining two were unemployed.

I own almost all MFR's (currently selling my only remaining SFR).

And even if court ordered, the payer may decide to not remain employed so as to avoid payment.

Your budget must be less and they release the remaining funds on completion. 

If I added my adult son to the purchase and/or LLC, could he live there & satisfy the owner occupant requirement and therefore enable us (my wife and I) to qualify for the smaller down payment?