If the qualified funds are only going to make a hard money loan, then the additional step of an LLC seems unnecessary to me. 

Real estate investing does not require special protection, simply have adequate insurance coverage.It is unnecessary to have additional protection unless you have 3 or more employees.

It is basically a month-to-month agreement and surely can cause unnecessary confusion with legal docs. 

I'm not saying you can't do your method and make it work, just that it is unnecessary and perhaps more work.

I don’t want to allow this because it seems unnecessary)-Mount her t.v. to the wall (not happening)-New shower head (current one is brand new she just wants a “better” one)

They pay rent on time, take care of the place, follow the terms of the rental agreement, and don't cause unnecessary drama.

The tenant will need to follow all of the laws about running that business and there can not be an unnecessary burden on the landlord. 

This only causes you unnecessary work and "muddies the waters" legally.

I also think it's crazy when people suggest spending unnecessary money to lower tax rate.I will make sure to do as many repairs and improvements under $500 that can be expensed, (the 2% limit rule on the safe harbor won't allow me to do a whole lot more)I don't file Schedule A, so no on the donations, I am not eligible for an HSA, or any retirement contributions.Don't have any dependents, and you cannot rollover non-spouse inherited annuities.

Additionally and in the alternative it was unnecessary for the landlord and/or his agent to make a house call to procure payment and the tenant is not liable for consequent costs arising.