We used a promissory note with the property listed as collateral.

Of course the house would be used as collateral, and we dont need 75% LTV could even do 50% which eliminates most of the rtisk for the bank.Anyone have any suggestions or banks in Florida that can help with this issue?

This holds some of their final payment as collateral until your job is complete in case something goes wrong after they leave the job. 

My questions are;  Besides a note stating the SFH as collateral, what documents do I need to protect myself should this go south.This is my first attempt at Hard Money lending and others have inquired of me but I want to get this under my belt first.Thanks for any and all help you can provide.

You have to have collateral for the money to be secured against.

So far so good.The only way I see this working is to pay off the mortgage, take a new loan with house 'A' as collateral and buy house 'B'.

It is also possible that cross-collateralization is occurring, that is - one or more lenders has each of the properties securing the debt for the other properties.

In other words you have a stock portfolio that you don't want to touch so you use those stocks as collateral for a loan.

What type of terms can I realistically expect for a Hypothecation/Collateral Assignment of Note/Deed of Trust?

Don't use her daughter as collateral.