2) We want all of this classified as passive income (and will for instance have a property manager), so I believe would want this classified as an LLC, with the investors listed as the owners.  

Typically this is going to outpace cash flow by quite a bit, but because of the lack of cash flow, you have to retain liquidity to handle any major expenses that come up.For instance... if you BRRRR a $75k home that rents for $900/mo and refinance all but $10k back out your probably looking at about $4,000 in cash flow over 5 years if you have a vacancy or two.

For instance, Zambrano Properties LLC or Arch Properties.

For instance, if your triplex is cash flowing and making you money, do you have a higher and better use for that money?

Out of over 3K posts you will not find a single instance of me promoting dishonesty in any form. 

For instance, could I buy REO properties and sell them will seller financing?  

Also ask for the rent roll (current tenants, rent amount) and copy of the leases so you know for instance the commercial tenant on the ground floor isn't leaving soon etc...

In my instance, I let them out of a contract but asked them for an additional month's rent and security deposit.  

For bigger accounts- for instance, if you're marketing to large apartment operators- I would send them the type of Fedex envelope that is guaranteed to have been received.

@Christopher FosterYou may consider going to wholesalers but keep in mind competition is stiff as well and a non-refundable EM is required in most instances.