I have underwritten few deals for houses in that area which they all generate cash flow of over$200 a deal.

That means I file 1099s to individuals , LLCs, partnerships, sole proprietor etc.- it really isn’t that time consuming or expensive. 

I'm looking for some input for best strategies to either partner individually with each investor and form an LLC to hold the property or, create one or more LLC's with multiple members with all of us working together. 

Hard to fault them for that.If borrower is made aware of the situation they should make you whole... and perhaps title will generate a revised settlement statement which shows the actual interest paid.

I don't know what your market is like, but I feel like highest sale price would probably come from selling them individually as single family houses to retail buyers.  

I would encourage you to find a group of like-minded individuals and hang with them.

Does each unit have individual laundry units?

Do activities that generate the highest value possible, most often finding deals or selling yourself/your product.

The rental unit is not generating income yet so I could fund the business checking account from a personal account until there is revenue to pay the mortgage. 

If you want to factor in utilities and furniture for the house, it's about 9-15 months before everything is paid for with the profits generated by each individual STR.