It sounds like you are compliant here.

Once fees reach around 3%, the loan is no longer compliant with conventional guidelines.

I would also want to have an attorney design a specific lease or terms to insure she is staying State compliant, etc.

However the first floor with have to be Airbnb or medium term stays to stay compliant with the zoning and rezoning to fully residential would be unlikely so I am stuck with a commercial loan.

Seems like a a simple issue, but not sure what’s the proper, IRS compliant way of handling this transaction and ultimately getting the $ amount returned back to the LLC checking account since the product needs to be returned to the store.Thank you very much!

If you're using a software to market, you can ask for a legal opinion letter to help reassure you if they're (and by extension, you) compliant.

Some things you can do is charge a flat rate and cover the difference or call the utility company and get a 12 month average and make that a part of the rents.3: Personally I don't believe in furnishing or supplying anything for my rentals because my market simply doesn't call for it.4: Depending on your area and what the replacement cost for that building is, inflation can effect your policy differently, for this one I would call your provider and ask.5: Common areas much like an HOA would charge, put a common element/area clause in the lease stating the tenant is responsible for a percentage of costs for upkeep of common areas.6: This may depend on state laws, but I would look into if your area requires ADA compliant signage but if you wanted to put a no smoking sign so long as it's stipulated in the lease then it's your call.7: You can't always do much about guests so long as they don't stay indefinitely or cause a danger to other tenants.

A written notice that is compliant with your local law should be provided to those who are currently rate late on rent.

I haven't' done deals in TX but Yes, there's some kind of special regulation about CFD specifically in TX, but I think there's a way to navigate that and stay compliant.

There are additional complicating rules / requirements for operating your LLC in a compliant fashion that could make this option less attractive for you if you only have one or a couple rental properties.