I am not too concerned with a major market correction.Personally I feel keeping enough to protect ones self from going underwater during a market correction makes sense, but I also see how having too much dead equity can be costly if you are looking to build your portfolio. 

Its 3x 3/2's and 1x 2/2My question is what concerns/ complications/ cons does this propose, if any? 

“And because of Texas’ diverse economy, we are much more insulated against unforeseen macroeconomic events which might cause stronger economic headwinds in other areas of the country.”https://www.bizjournals.com/dallas/news/2018/05/07...

I called my lender and expressed my concern to which she said she would ask the senior loan originator.

I'm not opposed to the refundable fee because I believe whoever causes the damage needs to pay for it, so if it's my tenant, it should be my responsibility...

My question is concerning whether or not is can be a good idea to separate your real estate operations into two entities: (1) an LLC that holds your property and (2) the LLC that holds your property management operations, where the LLC (holding the property) would pay a management fee to the LLC (holding the property management operations) for its services. 

My other large concern is with budgeting.

I am mainly concerned with the Houston market.

I understand your concerns about the Series LLC, but decided in favor that option, since I'm going to wind up with 8-10 owner finance loans under the solo 401k, and 8-10 individual LLCs seems cumbersome and expensive.  

If holding it causes you to lose money month after month, but appreciates nicely when you sell a few years from now, you could end up making money.