Also, how does this anonymity strategy prevent a claim from being filed in the event a liability event were to exist? 

I think it's okay to not have a deluxe backyard, see what the market is demanding.We didn't want to or have the funds to do a full renovation, Here are some things we did when we got our primary ready to rent:-Tore out fiberglass tub and surround in master bedroom-Had new tub and tile surround put in (felt nicer for primary bedroom suite)-New toilets and all new faucets-Hired guy to resurface all kitchen and bathroom countertops-Took down popcorn ceiling and had resurfaced/ painted-Neutral paint and trim throughout (had different colors all over prior)-changed out washer hook-up valves to prevent issues Things I wish we would've taken care of:-regular yard maintenance hired out and baked into rent-LVP flooring throughout (kept mix of tile and carpet)Just did final walkthrough and got keys this morning for tenant moving out.

What are you trying to prevent ?

Ask that these expenses be covered under your liability coverage, as the leak was not caused by your renters, but it  did necessitate the moving of items to prevent further damage. 

Any delay or failure in the performance by Landlord hereunder shall be excused if and to the extent caused by the occurrence of any event that is beyond Landlord's control, such as fires/ floods, earthquakes, wars, sabotage, terrorism, vandalism, governmental acts, injunctions, or labor strikes, acts of God and any other occurrences that are unavoidable or unpreventable despite reasonable efforts to prevent, avoid, delay, or mitigate the effects thereof."

That impacts me negatively now (compared to 6%), but supposedly was to prevent IRS questioning/audit in the future. 

Your budget should deal with preventative or regular maintenance and emergency repairs.

I believe it tends to give me a slightly lower return, because the sponsor is going to be more careful, and if there is a severe downturn will prevent me from taking catastrophic losses.

Please let me know if all of this is unnecessary or a valid strategy for building strong business credit.

Are you active or do you have a PM who is actively touring your properties to prevent or eliminate premises liability exposure?