Do investors park their money in some magical savings account with a decent interest rate that I am unaware of?

The Certificate of Service is for you to keep for your records, check which option you did for delivery and save. 

I'd hold off on repainting and save that as a last resort.

Additionally, here in Texas you arent liable for normal nightly hotel taxes if you are booked for 30+ days which equals a huge savings.

I plan on updating the entire complex as it's all very dated and could use a little TLC to maximize its rents. 

My end goal is financial independence and my plan is to use my savings from my W2 job to invest in more passively managed real estate that will cash flow positive and build equity over time.

I would suggest saving up some money before you dive into real estate.

I didn't quit my job straight away, mainly because i couldn't afford to, so I started RE and bit by bit closed deals until I'd saved up a years salary and then jumped in full-time. 

-To maximize rents I would recommend that you consider unit upgrades (depending on what condition current units are in).

Looking for a quicker pathway to make that second investment vs waiting 2-4 years by saving up cash.Any help is appreciated.