Rent collection and expenses can be managed through a separate business bank account under the LLC, even if mortgage payments remain personal. 

Collected first rent and everything going smoothly so far.

If saving more helps you put more down on the rental AND you want to buy quickly, consider that route.If you are slow playing your next purchase, maybe you go a different route.Personally, I do not mind being more liquid and collecting interest or investing in the market vs paying debt down, but that is me...

Your biggest risks are tenant defaults and rent collection issues.

I would definitely double check  ALL of the info they provide especially rent collected.

It is likely the debt may not be collectable as the deadbeat clients are keeping everything on an under the table cash basis.

Screening tenants takes 2-3 days, 30 min per day as you collect paystubs and contact past landlords.

Basic services like garbage collection don’t qualify.Material participation: Owners must pass one of the seven material participation tests, such as:You spend more than 500 hours working in your short-term rental business.You carry out all the necessary tasks to run the business yourself.You work more than 100 hours in the business, and no one else contributes more time than you do (this is often considered the best and easiest test to meet).

This was not the case of vandals burning abandoned buildings, nor the case of landlords burning building to collect insurance.  

Prior to anyone submitting an application ensure you share your rental criteria clearly ( i.e. credit score, your preference on acceptance of rental collections, evictions, felonies, misdemeanors, pets etc. ) as well as sharing any additional charges ( i.e. monthly pet rent, pet deposit(s), security deposits, admin fees etc. ) people unqualified will usually "walk" as this stage and that is where you will save time. 3.