You are collecting $936/month on a $54,000 loan.

Book on Managing Rental Properties: A Proven System for Finding, Screening, and Managing Tenants with Fewer Headaches and Maximum Profits: 3 by Brandon TurnerHow to Invest in Real Estate by Brandon TurnerBook on Renta...

Book on Managing Rental Properties: A Proven System for Finding, Screening, and Managing Tenants with Fewer Headaches and Maximum Profits: 3 by Brandon TurnerHow to Invest in Real Estate by Brandon TurnerBook on Renta...

That is a risk I am not worried about because I know he collects about $3700/mo from the military, which should cover the mortgage.

@Joe VilleneuveHaving a better idea of the property condition in real time, controlling who moves in next door, maybe savings on repairs by combining primary and investment capex expenses (IE, a painter might give us a better deal painting both properties at once), really knowing tenant and planning for future lease extensions or termination.All arguable of course.

Our plan is to collect rent through our LLC even though we bought the home in our personal names. 

All you'll have to do then is find the buyer, collect the money, and pay off the home's release price (hopefully with a little extra!)

That already has liability coverage.According to your situation and personal preference, you might decide to 1) just go holding Title in your personal and and using insurance and umbrella policy, 2) holding Title in the LLC and having insurance and (maybe) an umbrella policy.The "alter-ego" aspect is basically using the LLC as an extension of yourself. 

When you BRRRR, then you are keeping the property and collecting residual passive income (if done correctly).

Cozy.co is what I use to collect rent and bill tenants for any maintenance issues (not due to general wear and tear).You can also use it to track maintenance requests, screen tenants, have them record insurance policies, etc.Did I mention it was free?