Do you think this is adequate, should I look at putting my house into an LLC?

No, that is what the government is supposed to be doing with at least some of my taxes already-- providing adequate and effective programs.

Adequate reserves, got it. 

. $14K is by no means an adequate capital pool for investing in Rentals.

I would suggest you save until you have @30% down payment find a deal that cash flows minimum 8% Don’t forget after the first rental save enough to cover repairs and capital expense replacement make sure you have adequate umbrella insurance.

If it's the end of the world and your magic spreadsheet falls apart if the rent shows up on the 10th one month of the year, you're not adequately financed for running rentals in these classes.

It is wise to push your tenant back to the management company so that communication is adequately logged on file.

Account for the points/rate in your numbers and have adequate reserves and multiple exits  4.

Did I mention this will be a recourse loan, do you still feel 2-5% is adequate for this? 

But there is always the slight possibility that you get a crazy tenant that says your house has mold and it hurt their lungs forever, someone randomly gets attacked on your property and says you did not provide adequate protection, you discriminated against them.