As a matter of fact, forming it in other states could save you $$$ in formation and the long run.Bottom line, my opinion, it is not necessary at your stage of investing.

Addressing that now while it's empty will definitely save you headaches in the future.

Or, if my better option would simply be to keep saving and learning for the time being.

This could get you the cash you want and save the commissions and closing costs to sell the property and buy a new one. 

Ultimately, it sounds like the decision would depend on the interest savings you'd get.

I think I could do 2-5 houses a year with savings.

No room to save for reserves. 

I know that I could save some money by continuing to manage the property on my own, however, I have concerns about being out of state and not having eyes on the state of the home (leaks, damages, etc.) and of course, parties.

Increase income, reduce expenses, save, and invest.

The cost savings will go towards , countertop , tile ,lighting , and stainless appliances .