I had the opportunity to talk with the owner and he's a great guy, he did his best to make sure I was well taken care of. 

Buyers don’t care if you shelled out more on the rehab, if you’re priced too high, you’ll end up sitting on the market way longer than you want, driving up holding costs.Lastly if your buying on market, REO or Corporate sellers are dominating and not as willing to negotiate as owners would.

She doesn't care that you manage the property, she cares how you manage it.

I dont care if its a dollar, if someone steals from me im comming for them.  

The bank will make you leave 25% equity in the property - but you also still want the property to at least cash flow some - so be careful how much equity you pull out / new debt you take on.I would do a cost benefit analysis of what your actual gain is in cash-flow on buying a new property with a (currently) higher interest rate (if financing), versus just holding on to the current appreciated property and enjoying that cash flow.All the best!

Careful in the Stock Market, seems great on it's upward trajectory however...

I was told they take care of everything when setting up LLC.

That's how you care for your friends and family. 

If the above is true, the income will offset the debt in the DTI calculation, so who cares? 

However, you have to be extremely careful financing 100% of the transaction as you still need reserves, closing costs, etc. and make sure it cash flows.You didn't mention if this would be a rental or owner occupied.