That may also help put your mind at ease or alert you to a possible issue. 

This approach can balance cash flow, manageability with a smaller initial investment and ease the learning curve while allowing for gradual scaling with the help of local real estate professionals and property management companies. 

Does anyone have recommendations or thoughts on approaching this situation for ease of management and tax efficiency?

Does the software you use have an ease of use that makes preparing the study straightforward?

You are able to have access to it and buy it with relative ease and in fact, you can use this as a point of leverage and negotiation with your Seller in echoing to them that the bldg. currently does not cash-flow that well for you and you have to renovate - although your Seller may already be aware that rents are below market and has already priced it accordingly... if this is the case, then just buy it without without using 'below market' rents as a negotiation point. 

The ease of the asset becomes the most important part at a certain part.

To be vertically integrated it takes discipline and practice with time under tension of actually doing what you are trying to sell.Below you will see the pre-rehab property and hope to share the finished product soon!

As for the financing it is personnel decision but I believe the thing that separates RE from other investment options is the ease to leverage.  

That does ease my mind on spending.

The advantage of multifamily is the better control of valuation by the owner and the ease of operations since it's all localized.