I have a 'S' corp in another industry and despite me forming it RIGHT FROM THE BEGINNING, it had very little impact on my day to day operations and tax ramifications. 

Generating gross operating income $190,000 with $80,000 expenses leaving $110,000 after taxes and interest left with $60,000 profit in the pocket.The way I am structuring the deal is that If the investor puts up $300,000 they will have 85% ($50,000) of the profit and being that I will be doing the day to day managing of the deal 15%($10,000) per year. 

Thanks in advance to all experienced vacation rental operators!

A business he still works at 5 days a week putting in 50+ hours.My point here is you are young (I'm five years your junior) and have many decades to grow and operate your yet to be built real estate portfolio.

My dad and I operated a small sawmill in the other building On the property.

It looks like i'll have to deal with the bureaucracy which is going to delay me for weeks, seems like they are operating 30 years behind as far as technology and communication.  

Investors find it uneasy knowing the operating partner (gp) will have little skin in the game and are less likely to invest.

@Julie MecheWelcome to the site.Others have provided solid suggestions on were to go.You have a relatively small amount of capital so I would have to agree that your limited to one of the lower priced markets such as those in the midwest.Whichever market you choose the most important thing is to meet the companies that operate there and drive the neighborhoods to make sure you are comfortable with both.

I own and operate an internet advertising agency and I think I see a niche where my agency's skills could be profitably employed. 

you do not want your funds to be used to cover operating expenses if they are not reasonable.