Now, of course, like anything else some contractors are better than others.

I am hoping there are better ways to acquire a property then doing this, willing to hear any suggestions. 

If your listing says you can sleep 12 people, you better have more than 6 place settings. 10 - Vacation Rental Insurance.

If you are getting your hands dirty I'd say stay local because your appreciation will be better long term but if you want the passive route there are several markets east of you and maybe north.

if its all your money and risk. then the 50 /50 split is not warranted at this level.I would want a better split for sure.. something like Hey we pay you set fee and a bonus but no way 5050 at least for me

Trying to figure out which of these two seems to be better , pro's and con's .

This is keeping many on the sidelines as well which could present opportunities as you might find yourself in a position where you have better negotiating leverage.

Can I take the potential profit from this deal and use it better elsewhere?

It will make you a better landlord down the road.  

You can almost get 6 units for the same out of pocket investment buying separately as you can buying the 6 unit, potentially slightly less cash flow with a better rate and less stipulations.