Setting aside a percentage of the rent for capex and repairs sounds like a good idea, and for some it is a good idea. 

Either set aside funds, or try to screen tenants better - or both.

If you change it you may want to have an attorney look at your changes.I use zillow or apartments.com to accept applications, both offer services to run credit and do background checks.For screening you need to set your criteria before you start advertising.I recommend reading a book on landlording, my favorite is "Landlording on Autopilot".

I discussed the idea of an LLC with a local banker and he indicated setting one up especially at this stage was something I could easily do so I submitted my application with the state already.

You can cold call to find off-market deals or consider expanding your search to get more opportunities. 

MLS, Zillow, Cold Calling/lead generating, Realtors, Mail Marketing, SEO/Online marketing...If you are going direct-to-owner (aka sourcing your own deals), you'll have the most and best options. 

Good Morning all,     I am just starting out in Real estate investing, and am wondering whether or not to set up an LLC.

This is an average condition house for the neighborhood and area.I have set my screening requirements as:600-650+ credit score3 times monthly rentNo evictions, violent, or sex crimes6+ months of job historySome form rental references.I have an applicant who meets all requirements except I am unsure if he will have rental references because he told me he's couch surfing right now.  

I haven't found many by searching so hopefully someone has these keywords set up!

Other beneficial tax strategies would be a cost segregation study and bonus depreciation which would allow you to accelerate your depreciation and not have it set at 27.5 years.