It sounds easy, although it isn't, but there is a way to do this effectively.

I’d love to learn more about how you operate in multiple markets and what strategies you’ve found most effective for managing properties remotely.Looking forward to staying connected!

My primary goal is to find the most cost-effective solution that minimizes tax liabilities, including avoiding property tax reassessment and maximizing the step-up in cost basis. 

Again, the BiggerPockets store has some books on this topic, or you can learn about it by watching podcasts, reading blogs, and interacting on the forum.

Also, how effective is their CRM—does it integrate well with other tools, and does it offer automation for follow-ups?

We don’t know any PMCs to recommend in the area mentioned, but since selecting the wrong PMC is usually more harmful than selecting a bad tenant, you might want to read our series about “How to Screen a PMC Better than a Tenant”:https://www.biggerpockets.com/member-blogs/3094/91877-how-to-screen-a-pmc-better-than-a-tenant-part-1-services-and-processesWe recommend you get management contracts from several PMCs and compare the services they cover and, more importantly, what they each DO NOT cover.

You likely don't have the net worth, proper LLC management or proper separation of personal interests to make this an effective approach. there numerous BP threads you can search to get more insights. tldr - keep under personal name and get a good umbrella plan. 

They also didn’t like the idea that Phase 2 investors would dilute their position when they come in later.What are some fair and effective ways to address this concern?

Or there can be being a GP in a syndication, where you have, effectively, no money down: source $3mm deal, commit $50k with your LPs, collect 3% acq fee ($90k) without ever funding your $50k... you pocket $40k, and have a $50k interest in the deal. 

My model is NOT good for LTR as it's not cost effective.