I understand the desire to streamline operations and avoid unnecessary paperwork and fees.

It only matters if you are operating as an LLC or not.  

But yes, I have some tenants that I've had for 8+ years now and I've had to raise their rents twice to near market because...as I told them...insurance and taxes have gone up, and the property operates at a loss, it's a business and I must raise rents to stay afloat. 

Higher rents (Really higher Net Operating income.

I was shocked to the core.

You could try leasing the rooms to an entity and then using the entity to lease to tenants to shield you from liability from operational issues, but I doubt this works.

In many cases a simple LLC with an operating agreement can handle what you are trying to achieve.

This allows you to generate rental income that can help offset your mortgage payments and other expenses.Real Estate Investment Trusts (REITs):Consider investing a portion of your equity in REITs, which are companies that own, operate, or finance income-producing real estate.

Looking to connect with an Airbnb STR operator in Rockford.

There are obviously a lot more factors that go into it - real estate is always going to be a mix of the tangible property/market itself with a mix with the investor/operator including experience, risk appetite, financial situation etc.I would say however if you are just getting started in real estate - LTRs are probably (in a vacuum) the better bet as STRs are certainly more sophisticated and challenging from an investor perspective