An LLC is useful for two things: anonymity and legal protection.

I like to have 1-2 virtual assistants to handle tasks that I don't want to spend time on.

A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings.

Just remember you are spending time and money to improve a space that isn't yours and you're not able to take the improvements when you leave, ownership should have some skin in the game especially in a new build.   

She works part time because it's a good balance of her interests, and protection for the family.

There are two requirements to claim REP status1) 750 Hours2) You spend more time on real estate than other activities such as your W-2 Job or BusinessYou want to work with a tax professional who will be able to advise you on what hours count and what hours do not count.Furthermore, the CPA may have a nice worksheet that you can use to help you document your hours.Best of luck!

I have a great job that I love and currently do not need to spend the cash flow from the properties. 

My strategy incorporates asset protection measures like LLCs, specific trusts as well as professional property management to spread risk and ensure quality operations.As well as using tax codes to my benfiitSection 179, IRC Section 162, Cost Segregation and Bonus Depreciation and later 1031 them out for larger projects. 

We now are looking to create an LLC and setup the necessary legal documents to protect both parties and layout the terms of the agreement.

Protect from what?