It depends on a lot of factors; primarily the local jurisdiction rules that may limit lease changes (in Portland/Oregon rent, security deposit, screening fees, an no-cause evictions are heavily regulated).

Therefore, your long-term income depends on the city's ability to attract new companies.

Great idea(s) depending on your market. 

Depending on the state, when someone rents for a certain amount of time, usually 30 days or more, they become long term tenants in the eyes of the law, and they acquire "tenant's rights". 

When I looked at prices recently they look like they've gone up quite a bit but I know they vary a lot depending on the neighborhood. 

It all depends on the state.

@Kyle Carter  We love renting to Section 8, however depending on the size of the property you may not be able to realistically rent to 100% section 8.

You generally would find that depending on what deals you have at the other end of the table best helps decide this answer.

We see a tightening or restricting of coverage, higher deductibles, more tedious underwriting requirements, and increasing rates.As far as deductibles specifically, it really depends where you are in the country. 

Therefore, you would need to file partnership returns for each LLC.Given these considerations, both approaches could be correct, depending on the specific circumstances of your LLCs and state laws.