I have heard that judges here (there are only 2) will throw out any fees they deem "excessive" including and especially daily fees.I will be adjusting the wording in my future leases to be more in line with this interpretation.

The amount is (IMO) excessive - - it ought to be ~= to a service call fee (50-100).The object is to preempt frivolous calls

If the resident was in there one year or less, my expectation is that there would be some touch-up required but I shouldn't have to repaint all walls, so anything in excess would be considered damages. 

You wouldn't form an equal partnership with someone who wanted to spend all income on lavish fixings if you wanted to use excess income to start a business.

And maybe even smaller avatar size if I can see more thread titles in return :)Excessive scrolling can be just as evil as constantly having to resize. 

Excess funds beyond a small cash position go into an index fund.As a use case, small improvements can/have been paid by debit card/check.

Now for as far as the LLC, I would talk to an attorney and CPA about that, it seems a little excessive to have an LLC for each property especially since you might have to be doing separate tax filings for all the LLCs.

If I have excess cash lying around, I may consider the opportunity but it is not my primary activity.

When you buy a rental here the day you close (after rehab) is likely the best it'll ever be, it's not going to appreciate and in many cases you can see depreciation here due to excessive sprawl. 

You may find a distressed property that might be viewed from the above comments, but, every lender has a duty to obtain any excess equity from the sale of any type of collateral above what they were owed and remit that back to the owner.