Needless to say, I feel they are not going to respond favorably to my dramatic increase in rates.

The last thing you want is increased vacancy due to pest problems.

A LLC will likely increase your taxes not reduce them.

My advice is buy, but purchase on today's numbers not what it is going to increase to.  

Minneapolis has had and increase in rents of 8.85% in the last year.

If you take into account that rent will continue to increase over the years while your payments remain the same your cash flow will only increase.

We are projected to be the #4 hottest metro market in the nation this year with an increase in appreciation of 7.2%, and are also projected to be the #1 rental growth market in the nation this year with an increase of 10% for 2017 and 8.5% next year.

Right now thinking to hold on to it for long term because of the location, equity should increase signficantly)3.

I sometimes do this at lease renewal time, offer them a choice of upgrade (of course this helps increase your property value AND make tenant happy.  

Daphne V. if you are just starting and want to be simple (as well as free potentially) I have no problem telling people to get started on Excel (or Google sheets) to track and categorize expenses.