With scenario 2 you can do a cash out refi on your current units and take that money to acquire more units...ideally utilizing the BRRRR strategy so you can keep growing faster and faster.

Distressed sales are even better if you can get access to a wholesaler that picks up high-end homes.

For example, how do I prove to them that I didn't just acquire a key to an empty building somewhere and showed them a unit that I didn't even own?

You can buy for this, list for that....if you do not wish to personally take the listing you can legally split commission with someone who will.You will have access to better tools, information and resources.

I wish I have more tax experience in real estate but I suppose I'll be gaining more as I invest myself and become more involved in the BP community :) My goal is to acquire 70 rental units in 7 years.

Most people acquire older homes, brag about there cash flow of $300 per month but spend over $2,000 a year on maintenance. 

Why do you want to move money they can use at 15 for education to money they can only access at 65?

Dogtown is a great area that's walkable to Forest Park with easy access to both 64/40 and I44 so I would think this development would do well, even with rents in the $1200-1900 range.

I understand the simplicity of acquiring properties personally but I have specific reasons for using the LLC that have nothing to do with asset protection. 

I have never done one or have been to one but looking at Auction.com there are some really good properties in the area my business partner and I are looking to acquire a fix and flip.