We are not putting up capital, just handling all development/build planning and operations.

You can certainly own multiple assets in the same LLC, but I would be careful about operating a business and owning other real estate or investments in that LLC.

Expenses will level off: Multifamily operators have been plagued by expense increases in the form of taxes and insurance, for the last few years, especially in the south, and especially in Florida and Texas.

@Patrick Pan, if I was operating in a state where that was a concern I would just contact their current landlord for a reference.

I feel like it's a space where great operators can really clean up, since the bar is set really low, in my experience at least.

I don't understand why they operate this way.

After paying a competitive rate for the property management and ASSET management that the small operator does himself.  

Even really skilled operators are left with no back up plan because they can't pivot to LTR in that market, can´t fetch the price they paid because the STR has lost some steam and was bought using nightly rate numbers etc.

Look into contacting some builders that operate larger scale in your area.

While I don't believe that you need a full blown business plan, strict operational budget, timeline, scrum board, etc...