There are a few problems with what you said and how you are planning to go about filing taxes for your rental income.First, I think you meant your LLC is operating in a State that is NOT a “community property” State  As a result, you will need to file a LLC tax return with the IRS and State -> Yes, you are required to file The LLC tax return you file (I’d recommend getting help) will include an IRS Schedule K-1 for the LLC parters (you and your spouse).You will need to use these IRS Schedule K-1s to report your rental income and expense on your personal taxes return. 

@Ane DeysI would not generalize all REITs as being equal and there are also a lot of private funds who did not go the REIT route as a reit, while having specific tax benefits is also required to be passive.

Already some well-known ones have paused or cancelled dividends or issued capital calls for large property tax increases, deferred capex they thought they would avoid by selling out before it hit, and so forth.

When calculating the income-to-expenses ratio (also known as the DSCR), you would want to consider your: Rental Income, Principal and Interest Mortgage Payment, Cost of Taxes, Cost of Insurance, and Cost of Management fees.

Which I’m targeting properties that have tax liens on them with the correct zoning.

Are you in a higher income tax position?

Why are we paying this: He didn't pay taxes or insurance on the house for years, voiding the agreement.

It doesn’t protect you or give you tax write offs.6.

My rough strategy is buy SFH (older but (semi) recently remodeled B- to A- properties in good areas likely to continue appreciating and attracting good, trouble-free tenants) 0% down VA (may consider a small amount on second property, like up to 3% just to speed things along) and stay in it as my own primary residence until at least 10% of purchase price paid off and able to cashflow 300+/ month after mortgage, taxes, insurance and 15% set aside for repairs, vacancy, and maintenance (like I said, I'm not overly interested in rental RE, so I want to be sure it's lower effort and worth my time in return).

@Lora Krulak I may be biased, but having a competent real estate focused tax professional on your team is a big one.