BUT I was wondering if the IRS would allow me to use my SMLLC as my other "Partner" in this new Partnership/LLC? 

Lots and lots to consider here.The main thing I would suggest is to reach out to some agents in the markets you are trying to find properties in. 

Brokerages are always looking for young, hungry people to impart knowledge to, however, I suggest you try to ADD VALUE to them by way of volunteering your time.

The house has five bedrooms and 2.5 baths, 2,894 sqft.We were wondering which strategies are working for other investors in this area?

If I was going to suggest purchasing new construction where I know its unlikely you will cash flow then I would be looking for long term appreciation and I would suggest that in some other locations we could discuss if you are interested.

We as a firm have investors working with us who have rental properties all over the US big and small.Finding a real estate-focused tax professional and one who can help with advisory and grow with you would be my suggestion to focus your efforts on finding.

We as a firm have investors working with us who have rental properties all over the US big and small.Finding a real estate-focused tax professional and one who can help with advisory and grow with you would be my suggestion to focus your efforts on finding.

Wondering if there's something cheaper but good!

Any wide frame suggestions or is a townhome a bad plan due to the HOA ?

Please pm with suggestions