When my tenant moves out, I'm just going to eat the cost and put in the flooring I've put in my last few rentals that went in very well, look great, and, so far, no issues; the Pergo Wet Protect from Lowes.  

Does an LLC not offer that protection?

New York recently passed the “Good Cause Eviction” which protects tenants from eviction without legitimate reason.

It doesn't bother me, but it seems wildly hypocritical.I don't know who you are protecting.

Lastly, every sheriff's auction has the same ten players.

However, what you suggest can be "a thing" in actual squatter situations, especially in places where owner's rights are not well protected.

.- Insights on the best practices for structuring these entities for optimal asset protection and tax efficiency.- Any potential pitfalls to watch out for during this process.If anyone has navigated a similar setup or has referrals to professionals who can help, I would be extremely grateful for your input!

But Arizona provides fewer tenant protections, even as rents have soared.

A great real estate agent will have all of the players in place for you. 

This will protect both you and your potential partner.