You must properly treat the LLC / Rental like a business.Rents get deposited into the LLC Account.Expenses get paid out of the LLC Account.You can make contributions / distributions to / from the LLC Account.Try not to receive rents or pay for expenses directly from your personal account.Best of luck

I got a pre-approval and sent in 7k as a due diligence deposit (before I learned to NEVER do that).

I'll be making two changes on future leases as a result of this - increasing security deposits; and making rent due by the 1st (current grace period is through the 5th).http://lawfilesext.leg.wa.gov/biennium/2019-20/Pdf...

Would be really grateful for guidance and thoughts on how to be productive between picking up and depositing rents.

Deposit is non refundable (unless I as seller  cannot close) If you are really a "Cash buyer" that having the cash to put down for a decent size deposit shouldn't be a problem.

In that 6 hours of signing, wife and I both missed that the deposit transfers were not in new acquisition.  

You also have bank statement loans where they use 12 or 24 months gross deposits of a personal or business checking account.Buying a primary home is the fastest and less expensive on the pockets to then transition into a rental in as little as 6-12 months.

There is a solution though because there is Non/QM which offers a few programs like (1) year 1099, Bank Statement, and DSCR programs. 1 year 1099 is self-explanatory, Bank statement uses 12 or 24 months bank statements gross deposits and divides that income usually 75% over 12 or 24 months, and DSCR requires No income or job, it uses the rents of the property as income as long as the rent(s) are equal to or greater than the proposed PITI payment.None of the above Non/QM offer construction loans though so you will need to stay W2 or wait 2 years.

While separate accounts sure helps with the audit trail, it's not necessary if you note the reason for a a deposit and withdrawal on the drafts or "source" document. 

Thank you for the advise @David Abellard Jr  since I have posted this add the county allowed me to get my money back less the deposit of $5,060.