(Post Edited to Remove Solicitation)As far as cash payments, they can easily pay with a cashier's check made payable to the LLC or you can just offer a receipt for the payment and deposit into your LLC account. 

*Remove Living Room carpet and damaged kitchen flooring*Install laminate floors in living room and kitchen*Have kitchen cabinets refinished/restored (cheaper than new set)*marble backsplash and surround for fireplace*tile half-bath downstairs floor and replace vanity*remove half-bath downstairs weird rattan wall covering, paint*paint all walls*replace polybutelene with better pipes*tile upstairs baths, add new vanitiesThanks for any and all insights.

By your account, you would fit in to the Newbie category and I believe many of the "experts" on here will tell you that you're playing with fire by looking at properties so far removed from your backyard and not have the knowledge and plan to be doing so. 

How can they avoid paying taxes for removing/cashing out the money from stocks, bonds, and savings because they are loaning it?

You then apportion your other building expenses and report those on the Schedule E as well.Here are the expenses you'll want to consider:Mortgage InterestProperty TaxInsuranceWater/Gas/Electric/Sewer/Garbage Removal/Lawn Maintenance/Pool Maintenance (presuming your tenant is allowed to use the lawn and pool)Repairs to the property as a whole (ie, roof, plumbing, electrical repairs)Repairs specifically to the space you are rentingDepreciationYou then measure the room you've rented and compare it to the livable square footage of the house.So let's say you're renting a 300 square foot space, your bedroom is 500 square feet and you share the kitchen, bathroom and living areas and those common areas add up to 1000 square feet.So your rented space is 300 + (1000/2) for an effective square footage of 800 square feet rented.You then take the above mentioned expenses and multiply each one by (800/1800) and you claim that amount of expense.The only exception is repairs specifically to the rented area.  

Cash flow is typically not calculated on Owner Occupied housing since part of the property is being used for non-income producing activities (living there).Try to save as much money as possible so you can start working on your 2nd property.Also, you should remove the Zillow link to your property.

Per suggestion from head banker, I need to either remove "Investments" from my entity or just elaborate on what I do "Residential Leasing" and "Residential property rehabilitation" per @Jeff Bridges' suggestion. 

Our property taxes went up, snow removal went up, and we made additional changes to the house.

You would need to approve an amended lease removing them.

I put roughly 13k into it removing wall paper, wood paneling, replacing a drop ceiling in the kitchen with a dry wall ceiling, refinishing hardwoods, adding lighting, and updating some plumbing.$1100 in rent for a 60k property might sound great, but property taxes on the house are roughly $300/month, so its not as lucrative as it might sound, plus the 13k rehab out of pocket is more than my down payment so it cuts my ROI in half.