I would start there because most in your shoes who want to form LLC's aren't conducting the day to day activities appropriately and that is far more advantageous to you than merely forming an LLC.

I'd say 1% deals are going to be more of an appreciation play rather than a 2% deal which will undoubtably cash flow. 

As far as hiring the other trades, this can be difficult from a distance, who is helping locally?

Quote from @Elijah Edwards: I am hitting a roadblock in finding deals...

I would review this with your agent.  

BUT that $170,000 would give us the potential to buy a few more long-term multi-families.I'm absolutely positive that there are things I'm not considering, but any help, opinions, and considerations would be appreciated!

This helps prove your direct participation.Proof or Documentation – Keep receipts, invoices, emails, or even before-and-after photos as evidence of your work.

I specialize in working with other investors to find great deals that meet their cash flow and appreciation goals.

You really need to talk to a tax advisor in this situation.

I hope this hleps!