I was also thinking that 1031ing into turnkey provider properties may be a logistically easier option, but since I want to treat my real estate investing as a small business, I'm adverse to there being a middle man agency.

Also keep in mind that if you are denying a person based on their background check, you are required to send them an Adverse Action Letter that explains they are entitled to a consumer copy of the background check and contact information for the screening company that you used.

I'm not risk-adverse but I'm wondering if I'm missing something big?

I admire your determination and dedication in the face of obstacles and adversity.

The operating agreement is critical to keep all parties out of trouble and provide clarity should any disagreements, misinterpretations, or other adverse events occur.

Unless your first mortgage has adverse terms....

Any adverse effects I may not be seeing or should be maybe taking a deeper look at?

The listing agent has a fiduciary duty to represent the sellers best interest UNTIL and UNLESS the agent learns a adverse material fact that the seller is not disclosing.

But I wouldn't build a $100 million portfolio like that--one adverse move from the economy and you would be wiped out in a New York minute. 

If you are risk adverse real estate, (especially out of state) is not for you.