The house has an additional mother in-law suite that can be rented out.

Here are the details: Purchase Price: 400,000-425,000Single family home with a mother in Law suite in back; as configured now its a 3bed/1bath and a 1bed/bath; Will configure turn the garage into studio w/ bathroom, so essentially will a total of 5 bedrooms and 3 baths (as 3 separate units) after renovation.

In this new house, you decide you want to have your own space so you decide to find a place with a mother-in-law suite in the basement.

I have not retired yet, but lost my Job and I am at the end soon of settling my Workers Comp Lawsuit and than retiring in another 2.5 years. 

We are living in the main front house and renting out the ADU to a tenant.My question is, other than having landlord insurance on the ADU, a solid lease agreement, and a 3rd party management company as intermediary to help manage repair needs/requests (my partner and I both work full time jobs) and showings when the unit is vacant, is there any legal entity protection or other avenue that will protect us further in case of a tenant lawsuit? 

(Best of both worlds)  Do not count on insurance to bail you out of a lawsuit. 

Even if you are able to win a lawsuit against them, It sounds like they might not have money to pay the judgment.  

And the market will force them to do just that (remember, places WANTED to cut their profit margin in 2020 to court more business, but they COULDN'T, now they can), in fact it's already started, hence that class action law suit against Rocket Mortgage... when they went public in August 2020, they told their investors that the 2020 profit margin was normal and projected to continue.

In Ohio or another state where you own property, you likely will only be taxed on the income earned in that state and need to file a nonresident return rather than a resident tax return.Most likely the state where the property is located is where lawsuits would be brought if they are something for personal injury like a trip and fall or something of that nature because the "cause of action" arose in that state.

Looking to house hack a duplex or house hacking with a finished basement/ in-law suite.