Like the IRS would care about that LOLMaybe now the OP asking about cons of an LC will be more informed and at least look into it and what you're describing for more protection. 

In addition you will have IRS short term capital gains (normally from 15% to 35% of the profit ) & selling costs (normally about 8% of the selling price) factor those in as well.IF he OWNS it, you might be able to put together a deal that works for both of you.

Do I have to issue a 1099-int to my Client as well as the IRS ?

Do I have to issue a 1098 to Client and copy to IRS and keep the same for my Records ?

Rather the 24 month holding period with 14 days of actual rental is actually a safe harbor from the IRS. 

Here is a good general list form the IRS: https://www.irs.gov/faqs/sale-or-trade-of-business-depreciation-rentals/rental-expenses.

You don't just get to keep that depreciation when you sell it- the IRS says.."

@Jeffrey McintyreAlso be aware that a) not all self-directed IRA custodians and TPAs will allow your IRA to be the member of a closely held LLC such as this, and b) of those that do, some also require an attorney opinion letter stating, in effect, that the manager-managed LLC operating agreement has been reviewed and believed to be compliant with IRS regulations, such as those found in IRC Section 4975 and 408, and/or a manager's acknowledgement letter stating that the manager (you) will operate the LLC in conformance with the same IRS regulations. 

In addition to a properly developed operating agreement, some custodians require a) an attorney opinion letter basically stating that in the attorney's view the LLC will conform to IRS tax code for SDIRAs, and/or b) a manager's acknowledgement letter basically stating that the LLC manager (you) will operate the LLC in conformance with these IRS regulations.

Report the full $100k otherwise you might get a matching error from the IRS.