I would suggest doing your first flip close to home as there is a lot to manage, especially time and that is compounded severely when you do it from a distance.

My holding company is in one state(S1), the LLC is in a different state(S2), and I manage these out of a third state(S3). 

There's no law against creating a fake document, but it is illegal to use the fake document.Have you seen anyone using these in your market?

It’s all integrated and easy to manage from PC or mobile device.

That is the first thing you should do and then ask them and the property manager for the insurance and to get them involved.

I work for a Property Management company and have done it for years so I am not a rookie. 

The winning bidder won't have documents to prove ownership, so how can they protect their money or interests during this time?

I'm sure there's an easier way but I don't want to pay too much for it - I only manage our own rentals (18 doors).

To start, these are the fundamental underwriting inputs the GP/Syndicator will be making when arriving at their offer price:Management Fees: This will be very similar to any other bidder who relies on 3rd party management (and generally more expensive than a local operator who benefits from the efficiency of managing an existing local portfolio).

There are many lazy owners, so it’s not uncommon to have missing contracts when dealing with self-managed property.