Quote from @Michell Chase: It isn't a large amount but my concern is that if I remove the tenant in July I have no deposit in the event that there are damages to the unit. 

In our rental agreements, we use the security deposit to cover any damages once the lease has ended.

Also, check to see if your jurisdiction is practicing "Just Cause Eviction", which went into effect statewide earlier this year for municipalities that which to opt in. 

In your opinion, what is the most effective way to establish an LLC? 

Tenant further acknowledges and agrees that they shall be liable for all damages to _______ system due to intentional or negligent acts by the tenant, it's invitees, guest,  agents or licensees" 

You should bill them both for the damages, take pictures and go to court.

During your initial walkthrough, inspect the property for any major issues such as structural damage, roofing problems, plumbing, and electrical concerns, while documenting all cosmetic and functional issues with detailed photos and notes.Once you confirm the property’s potential, finalize your ARV and calculate the repair costs using either a reliable estimator or insights from contractors.

If your occupancy rate drops, you may able to patch the damage by trying other platforms but this will further decrease your ranking on the system in the future. 

Like the others, inside mount if you can fit them.Look cleaner but they are also harder to damage.

Yep for one especially in the early stages a hard credit pull would not be useful, just have them do soft checks for the time being and opt out of credit solicitation: www.optoutprescreen.com I could be biased... that said typically working with one lender than can help regardless of where you're looking and having a relationship with that will provide the easiest and most cost effective route long term.