Thanks @Bill Snyder.

Thus creating a monopoly that I don't know how to get out of.I've worked years in this industry from the PM-end and never seen anyone try to bill a percentage off the security deposit and, though a little digging is showing me it CAN be done, it seems like bad business.

My only concern is I believe most ADUs all tie into the same utilities and would be 1 bill.

From the research I’ve done so far, it seems that South Carolina taxes investment properties at 6% which makes a tax bill quite high compared to a primary home.

Quote from @Bill Hampton: @Brandon MorganAn LLC will not reduce your taxes.

I’m still reading the fine print of this bill to see how costs are affected.

Meanwhile you are stuck footing the bills... 

My total resulting expenses for that home including rent profit and bills are roughly $1200/month.

Quote from @Bill B.: I don’t know what was involved. 

Checking: collect all income here, then use it to pay bills.