Are you set on these only being your choices? 

You could also look at selling the "paper lots" in advance of building out the infrastructure, but that depends on your financial ability to take this from dirt to finished product, and ultimately for holding long-term if that's the goal.

Ultimately I think that a BRRRR sounds like the route I want to take, but think maybe starting somewhere else could be less risky so I can get my feet wet first.

I'm ultimately looking for 5+ unit deals but understand that 99.9% of the deals that come through are going to be SF and Duplexes, and that's okay. 

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I took the recommendation of James Kojo about speaking with the syndication sponsors who ultimately allowed me to invest a lesser amount which allowed me to avoid investing as part of an LLC. 

Its actually a hard choice to make, but once you do, it is the best choice.

Thanks @Adam Bartomeo and @Chris Seveney.My plan to move the rental property to an LLC was to remove personal assets from any liability claims (i.e restrict liability claims to assets of the LLC).Yes my plan were to quit claim the deed to the LLC, but if the mortgage company is not cooperating I probably have little choice but to leave as it is.

But ultimately, because of these risks, most real estate investors see most of their return from appreciation versus cash flow.  

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