It still operates today.

Additionally, setting up this first partnership meant ensuring that we have the infrastructure in place (credit cards/banking/operating agreement/business plan) to make sure we're ready to scale up from here!

You'd have to speak to whoever is the operating principal at the brokerage.

I'm coming up with Total operating exp: $1557/moPositive Cashflow: $540/mo2% Test is at 1.8%Cash on Cash ROI: 20%Thoughts?

If we're netting after expenses (accounting for annual operating AND capital expenses) a monthly cash flow of $700 or $8,400 annually, it would take 6-7 years of rental income to neutralize the capital gains taxes?

There is already a management company in place and they have operated it for the last 3 years like this. 

@Neil Smith, I'm sure there are a LOT of different ways to handle these things. 1) Tracking income & expenses such as rents, repairs, rehabs, etc I use quickbooks online and have a bookkeeper handle it for me even though I am a small operator.

As for the tax side of the question, your CPA can guide you on the tax benefits and risks before you start the Series LLC, but they should be very involved in your record keeping during the year to make sure you maintain separate records of the Series LLC while they are in operation (read the Texas Series LLC statute regarding record keeping required to maintain separate Series status).

If the LLC has a correctly written operating agreement, it has more options to decide when to pay, or to keep reinvesting the proceeds perhaps near indefinitely, and/or continue to disburse income without paying the judgment. 

We do all our banking from our front facing LLC- all operations and property management function out of that LLC for all our buildings.