I have not chosen a builder yet, but you bring up a great option to consider.

Now that you've had some success it is a good idea to clean up the structure of the business and continue forward on your chosen path.

That's a tradeoff I'm happy to make right now.So far we have enough saved for a down payment (possibly 2), we've chosen a turnkey provider and market, and we've lined up funding for the first deal.

You've chosen a great place to get started.

are you able and willing to spend time in person in your chosen market? 

There is also the local knowledge of a market like here in Lake Tahoe where lending can be trickier so an offer with a local lender might get chosen because they have a reputation to get a deal done vs a national lender that can have more red tape and a slower process. 

The original agent emails me to say the sellers have chosen not to move forward and I am in breach of contract.

You can check out sites like Zillow or Redfin to see what houses are selling for and what rental prices look like in your chosen market. 

Less risk.I considered long distance investing but instead have chosen to buy a few rentals in Spokane the last few years, I dont regret it.

Free market is good when some chosen/special folk benefit from it.