You really gotta treat people with kids gloves.

We treated everything properties the same as if we owned it in fact are cleans and communicating people often don’t even know which property we own and which we manage.

That's a creative way to treat the problem of not wanting to be an active landlord but still wanting returns better than a savings acct. 

And that will need your accountants direction to avoid a taxable event for the members by treating that as distributions not profits.

Looking for some advice on how I should treat this situation when I file my taxes this year.I bought a piece of property a few years ago and replatted it and split it into 2 (not equal amounts).

Because this is my first deal, I would prefer to treat this as basically making a large house (I plan to live in it) purchase that happens to have more upkeep expenses than usual. 

How’s Redondo treating you?

However, if I treated this as a flip and used the 70% rule, I could purchase at $216k (if I sold at $380).

Exchanges are great for tons of reasons, but they aren't a cure all and they come with some drawbacks.  1031 rules limit what you can buy, when you can buy, how much you should spend, how you treat the replacement asset, etc. 

There are certain back-up strategies that you can look at such as: Net Lease Properties (Triple Net Lease) Delaware Statutory Trusts (DSTs) upREITs (1031/721 Exchanges) or, if your exchange fails, a Qualified Opportunity Zone (QOZ) The Qualified Opportunity Zone is not an option for your 1031 Exchange because they are structured as "funds" generally in the form of a multiple member LLC, which would be treated as a partnership for tax purposes.