And your downside risk is protected because it's a house for you to live in - it's an investment to remove your biggest expense.

Then there was a domestic incident and HE got an order of protection against HER.

We would be so grateful for any input, experience, or recommendations from homeowners or agents regarding what would be the preferred choice for 1) attracting rental guests in the short term, 2) retaining value for resale and not looking dated in 10 years, 3) protecting ourselves from accidents.  

He has tons on real estate investing. with a strong emphasis on tax minimization and asset protection.

You can explain that any changes to the lease must be carefully considered, as you want to maintain the original terms that protect your interests.If you decide to allow the change, you could draft an addendum stating that each tenant is responsible for their own rent.

That would give you more rent coming in per 'house' and also help protect against vacancies (ie one unit might be vacant, but you still have rent from the other unit coming in). 

Your criteria should not include anything that would violate someone's rights as a protected class. 

Here’s why:Liability Protection: By having separate LLCs, you limit the liability to the assets of each specific LLC.

A well written management contract should clearly spell out what is expected of both the PMC and the owner, to PROTECT both and avoid misunderstandings.

Of course, you can't protect yourself completely, but this will also help you prepare for buying the next properties a little better, and it's an exercise I generally do when I'm on a showing for a property I'm serious about so that I'm factoring this into my analysis to some degree in a "capex" reserve.Capital ExpenseRoofWater Heater x2All AppliancesDriveway/Parking LotBoiler x2FlooringPlumbingWindowsPaintCabinets/CountersStructure (foundation, framing)Components (garage door, etc.)