If it's repurposed, you are fine. As long as you are not advertising it as a LV product. Any display of it should include a disclaimer that it was repurposed materials and is in no way a product from LV, and the logo is their property and in now way yours.
Now, with that said...do yourself a favor and stay far away from buying knock off materials. Plus, LV is VERY well known for protecting their brand, and doing it well. A great example involves the Jonas Brothers "band." One of them wanted a Gibson Les Paul painted with the LV pattern/logo. The hoops Gibson had to jump through for this was UN. REAL. And that was just to use the logo!
I, personally, would be slightly offended that someone wanted another brand logo on a handmade product from myself. I'm sure the customer meant no harm, but it's still disrespectful. It would be like me asking Nigel Armitage to make me a wallet, but then to have "Coach" stamped in the corner. Just my two cents.