From your recommendations on PM, contractors, banks, inspectors...etc...people will see that you know the area, recommend good, solid and reputable companies and will keep coming back to you to purchase the property from you. 

After having a few banks evaluate the property and receiving strong indications of a favorable LTV and interest rates I decided to move forward with the deal.

The law will enforce the lease agreement, as long as it legally abides by your jurisdiction's landlord laws.For future tenants, adding a type of "escape clause" only benefits the tenant.

I have about 250k in a SEP IRA and a friend who is a builder who wants to invest in urban neighborhoods where millenials want to live...but banks are afraid of. 

Would I start paying the mortgage from the LLC business account or still from my personal bank account? 

I'd recommend keeping at least 25% equity in the property (bank may require this) so you are not overleveraged.4.

Most banks have mortgage minimums so it basically reduced the buyer-pool to cash-buyer-investors.

i hope so. i asked for documents and pipe diagram but i havent received any. mortgage bank ordered appraisal so I assume they would check everything is legal, no?

In the future, PO Box or deliver to your bank. 

Discussing terms with banks is something new and I would love to start the conversation out the right way.