I find that converting the property into a duplex is a lengthy and costly process, and I want to start renting it legally without going through a long process, because I've spent for rehabs and don't want to put in more for now.

This is another area I don't focus my attention on - we buy/hold long term. 

Do any of you have long-distance properties that you manage yourself? 

As long as the ratio is 1 to 1, you are good to go.

Last time I checked the rates were around 9-10%.

I think they call that a long term rental. :)Seriously, it will be treated like a LTR.

The property is also in a great up and coming neighborhood, and its appreciated about $40k in equity in the last year, not including the ADU value add.

I found it on an auction site and contacted the realtor/broker who was my neighbor in my last house.

My options usually include the all cash/quick close to flip myself, listing it (as an agent) but also offering the seller to do a JV flip together, I could wholesale it, offer to buy it myself for a BRRRR or other long term personal investment, etc. 

Your income from the long-term properties is considered as your personal income so it shouldn't be so impactful.