I will be playing both fields. 

That would be my play here, I think its a quicker way to scale.

You also are only Cash Flowing less than $100 per unit.The ideal BRRRR deal would end with Zero of your cash left in it.  

Ideally personally I’d keep my overall portfolio at 35-40 percent equity.

Conversely you could own a partial interest in a DST much larger property to be passive with 170k whereas owning in the quality area yourself with 170k down might be like finding a unicorn.STNL NNN commercial is not a yield play.

My motto has always been, "Learn the game and play aggressively".... so that's what I am doing

Timing isn't ideal - at least in Minnesota - but I figure real estate is just like any other industry: regardless of market conditions there is always money to be made if you're creative, have a plan and the right strategy.My business partner and I have the creativity part down but the plan and strategy are items that we're working on.

I also have played with the idea of getting a turnkey 4-plex to start to avoid these expenses.

If there is a value add play then it can be possible but another option may be upping your purchase price a bit and asking for a larger seller credit to offset cash needed to close. 

Let me run a scenario by you... and here I'm just playing devil's advocate I'm sure you're already frustrated with this individual and sounds like you've already made up your mind.Scenario #1 tenant breaks shower door:Tenant doesn't disclose to you that they broke it and moves out only to leave you with a large amount of water damage AND a broken door.