This goes back to what I've been posting for a while and that's the fact most investors cannot articulate the risks they are protecting against or how these elaborate entity structures will actually protect them and there lies the problem. 

This is one of the best ways you can protect yourself against problem guests.

I think what folks are trying to advise here is that you need to make sure you're dealing with an agent who knows policy language, has good experience in the industry, and knows how to help you and protect you at the same time.Hope you find this helpful. 

@Tom Thomson so in some states you must honor the protective order.

The person being taken off the lease is not wanting to live there anymore and by law can terminate early in Indiana due to protective order being filed against roommate/girlfriend.   

The more I am reading and listening, the more concerned I get about liability protections.

Just make sure you protect yourself legally, so you don’t end up with half a house you can’t do much with.

This must produce positive cash flow to protect downside. - Understand the upside of the "rent by the room" strategy- Understand the upside of any repairs that can be made to the main unit. - Understand the cost/value of completing an ADU project- Underwrite mid-term and short-term upside cases as well. 

I know LLCs are a protection tool with no tax incentives but with those come higher insurance/fees versus staying in your name. 

Key issue is to protect your family.