My general rule for holding property is to create an LLC within the state where the property sits.

Just go to the MLS website and take down the addresses of all the properties you're interested in, create a route on google maps, hand write a short note for each, and go stick it on their door.

Should I create an LLC in Michigan and keep both properties under the one in Michigan or open 2 LLCs (1 in MI and 1 in TX)?

Most deals are coming from equity sellers, investors creating value (new construction, ADUs, adding square footage, etc.), and very last is MLS.

Paying down a mortgage is creating artificial cash flow and is not "investing".

I can just create a contract and pay him monthly after if he agrees correct? 

So technically it doesn't have to hold anything up or create a delay.You're not too late to get something going. 

You may go over next month and find someone living there you've never met that did some deal you aren't aware of.  

You need to create some form of a tenant selection plan and before they apply they will know what your criteria is.. example 600 credit score 3x income etc.

We added a patio slider door and created a deck, I always like to do this because it is relatively inexpensive, however is a great selling feature.