They do protect your assets from debts of the LLC. 

I have an excellent credit rating and my debt to income is 28%.Should I refi now (before 2016) or wait another year? 

There is no extra debt and no interest payments.Live in the home and continue to enjoy its appreciation.

Assuming the claim won, does anyone ever able to collect money from tenant either through their pay check deductible, debt collector, get arrest warrant for non-payment ..... etcI guess tearing up the carpet, put a new floor/carpet on, cleaning fee, wall damage, I am also planning to charge her for breaking the lease (charge 2 months, is it reasonable?)

Are you 100% cash, using a combo of debt and equity, hard money, etc.

I am 36 now, but when I was your age I was deeply in debt, had awful credit and had no sense of how to handle my finances.  

I never liked the idea of working as a means to an end, but as I get older (31), I am realizing that I could help so many more people if I don't have to worry about paying back all my debt and spending all my time at work and being stressed.  

You will likely still owe a large debt, as the interest alone (which they have an rignt to collect) on a $15k debt will be over $100/mo.  

I will have the sole and exclusive right to purchase the property at any time of my choosing for the nominal amount of $1 from the seller and whatever arrangement I might make agreeable to satisfy the relevant creditor bank's remaining debt.

I have around 18k in student loan debt.