You can share that with your accountant and start to have a conversation now of what your tax liability (if any) from this deal may look like and start to develop plans on how to potentially mitigate those if they are substantial.

Your primary insurance policy with $300,000 in liability coverage should be sufficient in 99.999% of all lawsuits.5.

Then there are warranties and the ongoing and trailing liability.

My goal is to determine if I can still use this LLC as a holding company while maintaining liability protection.

You could try leasing the rooms to an entity and then using the entity to lease to tenants to shield you from liability from operational issues, but I doubt this works.

I invest in Rochester ny (which is very tenant friendly) and the tenant friendly nature had given me issues yet, mostly it’s helped me reduce liabilities.

If that well made them sick ( which is very easy to do with contaminated water) having owned a Mobile home park on private water system myself.. you have a lot of liability here..  

There is zero potential liability.

After speaking with our banker, a title company, my accountant, legal, and others, it was determined that the insurance companies are not fond of rental owning companies doing more than just owning and managing rental properties due to liability risks. 

Regarding OH specifically, some good info on the OH secretary of state website:https://www.ohiosos.gov/businesses/information-on-starting-and-maintaining-a-business/starting-a-business/Scroll down to...Guide to Starting a Limited Liability Company in Ohio