I'm guessing maybe the biggest reason it wouldn't be ideal is the risk of piercing the veil.

Specifically, there is a concept in the law (this definitely applies in New York) called "piercing the corporate veil." 

@Everest Jordan, I recently listened to an expert panel discussion with James Eng, Dino Pierce, Jonathan Twombly and Jeremy Roll.They had some interesting things to say from a macro point of view.James, Jonathan, and Jeremy were certainly advising caution.For example, James Eng mentioned that he looks at dozens of T12's every day and what he is noticing is that the rents are flat, so at the moment there is no ability to drive rent growth.This tells him that the market is definitely softening.

My understanding is a personal guarantee backing a loan under the LLC entity pierces the corporate veil that separates personal assets from business assets.

It seems that purchasing the property 'personally' and then transferring it to an LLC might be considered a 'piercing of the corporate viel', thus eliminating any limited liability protection the LLC would've otherwise provided.

That slows down the piercing of the corporate veil... and could dissuade some people from trying.

I was hoping that I could just run the money out of my personal account, until I officially switch gears and go into "Landlord Mode" in a couple of months, but do not want to do something that will pierce the veil, discounting all the effort of setting up the LLC in the first place? 

My wife and I own a portfolio of properties in Pierce County, self-manage and have invested hours into our education to build systems that make the process easier and ensure we are following the law. 

@John Pierce  thank you for that input.

Isnt step 3 piercing a veil?