I plan to be raising the rents on them because they are currently paying about 40% under fair market rent.

Paying rent will force you to maintain a personal budget, it will ensure your property produces the income necessary to operate the property, it creates a savings for you as a landlord so you can prepare for the next investment, and it shows how the property performs as an investment in case you have to sell.You need two accounts: checking and savings.

Not dealing with bad tenants (letting them pay late, do damage, etc.)Understand that vacancy is better than having a bad tenant.

Normally builder will pay cash for the lot like i do that their skin in the game..

This has to be enough to pay off the old loan and your HELOC. 

If one house is your only income, you may not even have much to pay taxes on if you have a mortgage.

Sellers still owe 71k  which I have the funds to pay off but the catch is, they obtained the property with seller's financing.

People that use a manager would have no reason to come here and discuss how to do things because they're paying someone else to do them.

@Mark C.You are going to create a tax and accounting nightmareYou will pay taxes in each state you own property (typically) aThus each LLC will need to file in that state then you roll up to you which just adds more expense to your tax returnsYou will end up spending thousands of dollars per year to get taxes done which will eat any cash flow from making it so complexKeep it simple

I was talking with them and they pay fair market rent plus a significant premium $ on top of the monthly rent.