I have 0 50+ units but have contemplated the attractiveness of the increased passiveness that could be achieved by an on-site competent PM. 

I am currently contemplating the idea and I was wondering if you would see any downsides to it?

Those are valid concerns when you are contemplating a real estate strategy and the risks associated with it.Let talk about the pros and cons with the BRRR strategy.

Good new is she will move into another home of ours for same rent that we at one time contemplating selling.We thought of flipping it for around 165k also, if this was the case, I would have had to buy for around 95 and possibly profit 40k.

However, if you kept good records and depreciation was taken appropriately, and you actually resided in each half of the property for 2 out of the 5 years prior to sale you should be able to take it all in the one sale with the exclusion.You would always have the option of 1031ing half and since your already contemplating a purchase it would be the conservative approach

I currently don't have an LLC but am contemplating on setting one up eventually (don't like the high CA fees!)

I am, however, contemplating a smaller multifamily to live in while we tackle our debt.

There can be many reasons why you might not want to do what you are contemplating.

At the moment I’m contemplating selling the NC house and use the equity to purchase a cheaper home that can generate some cash flow.

Who do you know whos doing what you're contemplating.