Do this to get a smooth tile edge 

No, don’t do this. Use a tile saw, not a circular saw.

Looks worse

They make diamond sanding blocks or diamond sanding pads for a grinder that work way better…. Actually there’s a bunch of ways to do this way better none of them involve aluminum oxide sanding paper or any type of sand paper for wood.

Use a whet stone. Much better

you can make a better short than this cmon