Alex, this could be a difficult situation because the tenant has essentially been trained and probably identifies as a victim with a right to free housing.I would make the tenant one offer: if they move out within 30 days, you'll hand them their deposit plus a full month of rent.

The last straw as when a Section 8 Applicant who passed their background check came to the property management office with their full deposit and RFTA paperwork after seeing the property and the PM told them that someone else had already come in with their deposti before them and had signed the lease.

Most of my tenants deposit rent into my business checking account. 

(Or equivalent in your state)Is she expecting, like many tenants do, that you’re just going to apply the security deposit to the last month’s rent?

Due to my credit score, mines is variable and matches whatever the current prime rate is currently 3.25%. 5% is not bad if you can get it fixed for a period of time, maybe 10-15 years.

Does anyone have any recommendations if I should set up a bank account for the LLC so that the property management company can direct deposit monthly rents into that account, while our mortgage gets paid via that account as well?

Show it on your deductions from the deposit returned per local law. 

You need to get an estoppel at a minimum so you know what security deposits, rent amounts, etc.

I got 4 matching fans off Facebook marketplace for a steal and installed them in all the bedrooms and living room.

Why not use this time to build a rock solid foundation for your future:- If offered, invest in your 401k up to the employer match (never turn down free money)- Save up enough cash until you can get into a solid investment (one that allows BRRRR or a hack or both)- Use the extra cash you have each month to tackle the projects/reno... if the purchase allows for a hack you can create a new rentable unit first and then use the extra income from that to do the rest of the project/remaining spaces.- After completing the remaining project rent out that space, go after your refi (which clearly has a lot of equity now because you did the work yourself, added income creating units and without pulling another loan... and you're ready and in a fantastic position for the final R - repeat!