As well as 3 credit cards which so far have not cooperated and synced with Quickbooks which takes some extra time each month.

I connected well with him.

Typical cost for the setup would be in the $15,000 range which would include production of the Private Placement Memorandum, Subscription Agreement, and Operating Agreement, Investor Qualification Forms, as well as filing Form D with the SEC, and state “Blue Sky” filings in those states where your investors reside. 

I agree with @Ashish Acharya if you're interested in reinvesting the proceeds into another investment property and your goal is to minimize your tax liability a 1031 would work out well for you.

Flipping works well if you’ve got solid contractor connections, while rentals (like single-family homes) can be great with a BRRRR approach.

Cheap properties look good on paper but rarely perform as well as more expensive properties.

At some point if you're doing well, maybe turn the first one into STR or LTR, and do it again.   

We are not looking to conquer real estate but just start generating some passive income I hope this finds you all well.

@Stephen FlemingFrom my experience working with over 400 investors, your strategy of leveraging a low mortgage rate, tapping into home equity, and diversifying with a short-term rental (STR) in Northern Michigan is well thought out.

If it goes well, you'll learn a ton and will know what to do next.