This separation helps in maintaining clear financial records and simplifies tax reporting and financial management.Setting up an escrow account specifically for rental income within your LLC can offer several benefits:Financial Clarity: It separates rent payments from other operational expenses, making it easier to track income and expenses related to the rental property.Legal and Compliance: Helps in demonstrating that rental income is kept distinct from personal or other business funds, which can be important for legal and tax compliance purposes.Tenant Transparency: It provides transparency to tenants and other stakeholders regarding where rental payments are deposited and how they are managed.While it may not be a legal requirement in all cases, maintaining an escrow account specifically for rental income is a prudent practice that many experienced investors and landlords follow.

I'd make sure you've confirmed deposits have been transferred to the new PM along with any rent they've collected or your own deposits they may have (my PM keeps $500 of my money to cover any repairs that may come in). 

@Brian Willie this setup is very common to avoid having each Property LLC to have its own bank accounts.Only the Management LLC will need Operating and Security Deposit accounts.They all need to be single-member LLCs with the same owner, or else it gets very complicated.Find a good tax attorney to help set this up.

I also assume there’s a written penalty on the books for failure to disclose these are all things I hope you r realtor can answer instantly and 100% confidently. 

I recently read in a book that suggested I should open a dual checking and savings account, and take the security deposits from my future tenants and store them in the savings account, then use the checking to pay the mortgage or maintenance fees.

And you're in the right mindset wanting to focus on appreciation right now rather than instant cash-flow. 

I use online methods for payments, but recently I noticed Zelle records were absent and this placed both myself and my tenent in distress, as we no longer had evidence of a deposit. 

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.

In small college town with high rental demandAsk price 745kGross rent: 9750/mth 177k/yr     (differed maint properties with potential 200/mth per unit increase once renovated) estimated reno (190k across portfolio)NOI: 91,475/yr   (12.6 CAP)    (includes tax, ins, listed maint for past yr)     After reno NOI 127,475/yr   (14.6 CAP) Deal info:    - Owner finance 745k 20yr at 6% 20k down minus deposits (~13k)Cashflow  = 2100mth     (self-managed) (self maint similar to the previous owner)By this alone, 2100 cash flow added per month, it will put me at my financial freedom number of monthly cashflow is equal or greater than my families spending amount.

These were farms, land with timber harvesting, land with some mineral deposits.