, or you feel it's more hassle (liability, tenants complaints, etc) than benefits?

Well, when it comes to filing taxes I usually don't rely on the kindness of strangers (especially when they have no liability), but if you think getting a lot of replies (some conflicting) will help you make up your mind - Have at it.Honestly, am not trying to be a jerk (as you can see it comes naturally), but your tax guy is the best liability shield against the IRS you have. 

You may be better off forming a loose coop or other association where you can share resources, but limit liability for each member.EXAMPLE: let's say you get owners with 100 doors interested.

Landlord insurance protects you from unforeseen liabilities which relate to your operation of the property as a rental (i.e. advertising injury, someone slips and falls at a showing, an invitee of your tenant gets hurt on the property, etc.). 

Candidate 1: pit bull is a liability for you, regardless of tenant's insurance; paying a year in advance is a red flag -  @Theresa Harris is right. 

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

I also have an LLC formed in Texas and am planning to transfer my SFR into the LLC for liability protection.Could anyone provide detailed guidance on the steps involved in this process?

Pa LLC should be 2 member for limited liability protection to apply.

There are a couple of ways to reduce your tax liability if you decide to sell within the 2 year period:(1) If you've made any capital improvements to the house, you will likely be able to reduce the amount of capital gains tax you will pay on the property.  

Recommend you just Google "commercial lease" and copy & paste to get what you want covered.If you want commercial tenant to be responsible for the building, that's known as a Triple Net Lease (also shifts taxes & insurance liability).Then you should have a real estate attorney go over and approve your copy & paste creation.