I'm pretty sure many people would like to have that many properties generating passive income.

I would rather use my money as a down payment on an investment property rather than using to lock into a mortgage that isn't going to generate me any money at all.

Develop and operate?

It takes a lot of WORK to find, close, and operate deals even if you outsource some of it. 

I have not made any efforts as to cash for keys or serious improvements because I am a small operator that does his own work.

The value you and your wife have is finding and buying properties that are a good deal and I'm assuming would generate monthly cash flow.  

Even with our conservative underwriting, a 2 bedroom unit will generate an additional $2400 per year in revenue.

Our attorney explained that although we are profiting a small amount as the contractor, we are also members of the LLC, and will be essentially in charge of running the whole operation and should be compensated accordingly. 

We don't really have a check list that we follow, however these are the things we look for when we do complete an inspection:- Smoke and Carbon detectors are operational- No apparent leaks when running faucets and toilets.

It seems to me that if you have a strong understanding of RE investing and its principals, it would not be difficult to build a team that will operate under your direction.