I think I'd like to have all my money back so I can get into another property, while my tenants pay down principal... and I'm budgeting for capex, maint/repair, vacancy, insurance, taxes, and management... but is the benefit of having nothing in the deal worth having almost no true cash flow?

1- Secure contract with purchase price and terms2- Send contract to title (search and insure)3- Draft note and mortgage (you'll need a lawyer to do this- less than $500 likely)3- Seller uses proceeds (your down payment) to pay-off  the lien (The title company will handle all this)4- Close the transaction5- Establish payments to sellerYou'll want to make sure there will not be a delay between the payoff of the 1st lien- executing the "lien release" and closing your transaction- will require coordination.

Make sure you have good insurance in case she burns down the house.

And that was before taxes/insurance, etc.

My holding costs include $500 rent per month, insurance, and taxes.

Something to consider: Financing, contracts, title work, insurance, bookkeeping, taxes and returns can be overwhelming even when personally making a purchase let alone in an LLC when starting out.

Other causes will be at the mercy of your policy. 

With taxes and insurance alone, and a property manager (10% of the rent), can you still cash flow this property?

The first house the insurance company noticed the dog when looking at the house. 

She understands she will have a late fee, but I also called to confirm her insurance is current (required in the lease), and find out it was canceled months ago.