The company has about 50 employees, roughly half of whom are attorneys, and plans to make more hires.

If you are in the E-quadrant and utilizing an Employer-sponsored 401(K), your funds built up in this investment vehicle are actually already sheltered from inside attacks that could result from a lawsuit at one of your properties by ERISA (Employee Retirement Income Security Act).  401(k) ProtectionEmployer-sponsored 401(k) plans are safe from lawsuits.

Managing employees, managing tenants, can be a nightmare and distraction from my core business which is to raise capital and close deals.

If you are self-employed with no full-time employees, you can set up a Solo 401k through a 401k provider which allows for investing in real estate.

It's against the law every state because you're a licensed broker/agent/consultant and that is what you do for a living (you're an independent contractor) you're not working as an employee nor a contractor for the MLS. you'll have to run the fee's through your broker in order to stay legal and you may want to detail to your broker office what you'll be doing.If you own your own company then you'll know how to proceed.

If the owner was to put me on as their employee would that work? 

Some of these are contractors and subs, and some more direct employees.

The PM is typically an employee of the GC or investor that self performs.  

The company may think that since they're paying the rent, they now have a "free" house to move another employee into, without going through your screening process. 

@Jon Reed, I was in every unit just last week personally and my employees do quarterly inspections of every unit.