My questions: What's the best strategy for withdrawing some (or all) of this money while minimizing the tax hit? 

This house had minimal cosmetic work done. 

Doing a high-quality maintenance job by myself for a fraction of what I know I would have to pay a local tradesman (whom I am also sure would do an inferior job, sometimes an unsound job, as a matter of course to maximize his profit and minimize his time expenditure) also gives me immense satisfaction.Finally, I live in a city where outdated yet sound properties in passable locations can be had for very little money, fixed up for minimal cash outlay (as long as you do it yourself), and rented for competitive rates. 

In my case I have decided to do minimal/moderate improvements, keep this building pretty much as it is since I am able to increase the rent quite a bit anyway, and do a repositioning with my next MF investment.

I will need to minimize the amount of money left in the property so I can continue to grow my portfolio.

Best of luck finding a strategy that minimizes tax for you!

Minimally it takes 1 months to fill a vacant unit with a qualified tenant.  

Is that because I am trying to compare to what I have usually done which is SFH that are considered nice with minimal upkeep and I don’t use a PM.

The house is in great shape - the current owner was a carpenter and took great pride in his home so very minimal work will be needed on it.

At lower profit levels, there're minimal or no tax benefits.If you're married, an LLC filing a partnership return may be the best option.It is acceptable to not have any business entity when you start, as long as legal liability is addressed with insurance.