It's very easy to BUY a house, but 100% financing can produce high monthly payments an de make it difficult to cash flow.But, you're getting a duplex, so you may be doing just fine.

Now this is when it becomes a little difficult I’m trying to get approved for FHA Loan with the 3.5% down and it comes down to my credit being a little beat up I have enough for the down payment and Income to debt ratio is pretty high.

As you scale your business it will become increasingly more difficult to allocate your expenses to the proper rental or business if expenses are running through your personal account.  

Is this something really difficult to do while living a great distance away?

Should I pay off the balance of 8k and look into hiring a contractor and management team or should I turn over the project with it being down to the studs? 

They keep you busy at the refinery with all those "unplanned flaring events"...I've lived in Hermosa/Redondo/Torrance the past twenty years and finding something affordable is pretty difficult in our area. 

Having said, it depends on what your strategy is.If you implement the BRRRR strategy (look it up if you are unsure what is), you can get that type of return.But if you are looking for a  turnkey property to rent out, it will be very difficult to get a 15% CoC return in my opinion.

If I find that to be difficult, turnkey investing will be my next option.I would love to connect with wholesalers, contractors, investors, turnkey providers and property managers in these markets.  

I may be able to get a financial partner for this balance but if I cannot what are your thoughts on using an additional loan?

It will be difficult and ultimately that will be up to the underwriter at your lender.