I've read that I should open a business savings and checking at a local institution - particularly for the security deposits.  

@Carl Rowles we screen all tenants exactly the same, but know several of our local competitors cut corners to attract more S8 applicants - waiving application fees, security deposits, etc.You can try to weed out applicants that have poor "house maintenance" skills by doing surprise zoom calls and asking them to show you their kitchen, bathroom and another room.

Does the 1031 get tricky to pull off with having to match up the timing of buying and selling? 

It also means that your renters will want to vet their subletters carefully to ensure they get their security deposits back, etc.

As for cash flow, from sales; probably in year two and three which should match the timing for the housing market to reset past bottom of market and on to the stable appreciation side again.

As for cash flow, from sales; probably in year two and three which should match the timing for the housing  market to reset past bottom of market and on to the stable appreciation side again.

I chose to forfeit my deposit and walk away from the project.   

Using my own funds to deposit to the LLC (Is this step necessary?)

I am leaning to saying no but I may ask for additional deposit PLUS additional rent.

Consider all the things that could go wrong and see if the lease addresses them: unauthorized pets or tenants, early termination, security deposit, lease violations, late rent, eviction, lawn maintenance, parking, etc.5.