These operational expenses are eating away at the projected cash-flow.My strategy was initially long-term by and hold, but after looking at 2-3 units selling for nearly the same price and a 4 unit listed for $575k, selling it seems tempting.

I operate in the Dallas, TX investment space and can say it's a great market for appreciation as well as cash flow. 

I understand I should get a legal opinion and to setup an operating agreement, but I have these questions below to help me frame my perspective for when I go to an attorney and actually market to investors.Thanks!

@Jason Faulkner Just operate the STR yourself.

I'd definitely operate under the assumption that you are going to have to evict.

. - rescued me from a "no-show, take my money and go" contractor operating under dubious circumstances (don't trust your lender or anyone to perform the due diligence you should be doing on your contractor).

This late in the project this was not ideal but under the timeline we were operating under this added quite a bit of stress but we did ultimately get it done!

Spending an hour to scan other people’s experiences would have revealed that a rental is not a passive investment (even when sourced from turnkey operators who continue as PM).

For Multi-Family, Net Operating Income NOI is the most important.Goodluck 

I’ve owned a brokerage, did land development and run a turnkey operation before getting into wholesaling.