A real estate attorney advised us not to quit claim deed the property from individual ownership to LLC.

The justification to your wife to raise rents would be that your costs of ownership will continue to rise each year (yearly tax & insurance increases, repair/maintenance/CapEx escalation over time, etc).

@Kayla Johnson Without any experience in remodeling, repairs, maintenance, or home ownership I'd avoid this deal.

I think @Matt Devincenzo is probably correct and the lender isn't including rental income in his calculation.If not, you could always consider bringing in a partner (I like to work with family) where they put the loan in their name for a small ownership share.

Wouldn't it be nice if a Roth IRA could be transferred to a Solo 401k?

Most owners will not want you to sign a new lease until after closing since leases generally transfer with the ownership. 

Yes, you’re giving up a part of the property ownership, but I always say part of something is a whole lot better than all of nothing!

Would I be able to transfer title to my LLC after refinancing if there is a due on sale clause?

Given the following situation: $100K purchase price, $50K Rehab, $200K ARV, and let's say hard money lender at 90% purchase + 100% of Rehab.I was talking with a local bank and received the following guidelines:* For commercial (LLC ownership), they won't re-appraise until I've owned the property for 1 year. 

Conventional loans after about year 2000 aren't assumable or transferable.