But this is not the issue.

Eventually I will invest in cash flowing properties out of state.I'm looking for tips and advice on being a land lord such as maintenance, rent collection, taxes/accounting, legal, and things you wish you would/wouldn't have done starting out.

The corporate veil is really a legal matter, so consult with a qualified professional...If you are going to use the LLC for renovations, you may / should not be taking Title in the same LLC. 

I always hired contractors, and did material runs for them several times a week after work and cleaned up jobs on the weekend, which was also time I spent at the properties, discovering issues, thinking about the rehabs and what needed to be done next.

Also, Oregon state rent control rules limit to less than 10% per year for rent increases so the under-market unit may end up being under-market for a few years due to legal restrictions.Why are two of the three units vacant? 

Yeah..ok...And all teachers should have kids first...All doctors should have lots of medical issues before they can practice....All dentists should have lot of dental issues before they can practice...Every waiter should owner a restaurant before they can wait tables....Every car salesman should have bought multiple new cars before selling any....I get your point..... it would be great if every realtor had to have real life home ownership under their belt, so they have that BTDT experience..... but not gonna happen

Are there any issues with this strategy? 

Remember that’s the whole settlement issue.

Only then are we able to retake legal possession of the property.

I have used this lease for 7 year without running into this issue.