It is close to  University sonwe benefit from parent visits as well as graduation and football games.

Appreciation can benefit you in the long run. 

You get to use that deferred tax to purchase real estate that benefits you. 

EVERYTHING you can do open market, you can do with REO and the intangible benefit of the bank being emotionless (Doesn't think their piece of crap $250M property is wroth $500M) in the deal.  

Should I be using personal property bank account or the holding LLC bank account for these generic expenses for most tax benefit and least risk of audit?

I have a strong W2 income but few investments that will benefit our family when retirement happens; let's call that 10-15 years down the road. 

Totally agree with @Steven Wilson , get a property management company run your rental. and just another advantage, a property management company has the benefit of being viewed and treated as a professional entity.

You may not cash flow very much, if at all but you are living for close to nothing while at the same time having tenants pay down your mortgage, increasing your net worth, accessing additional tax benefits and hopefully gain some appreciation.Starting at such a young age would be amazing for your long-term financial future and will set you up very well. 

Maybe some lost tax benefits?

What I have seen is they will be willing to provide incentives and concessions in the form of 'free' upgrades or other benefits.