I watched a video on how to do this, but it was a bit convoluted. Does Reaper have a function that sets this up automatically with one or two clicks maybe? Thanks.

 

You can just record the output if you want to capture it live. Personally I would always have two tracks, the MIDI, and the Audio though.

 

Why wouldn't you bounce it in place, if you are still at that stage of your project? If you have to bounce through the master output, your bounce will contain all the effects you leave enabled on the master output. You always end up tweaking your master later, so unless you want all those effects permanently baked in by bouncing you just have to disable everything on the master temporarily.