The risk of "piercing the veil" applies more to LLCs when personal and business finances are not properly separated, not necessarily to individual landlords renting a portion of their home.A more practical approach is ensuring you have a solid lease agreement, sufficient liability insurance (including an umbrella policy), and properly reporting rental income and deductions on your tax return (Schedule E).

You could get into a solid multi-unit or a single-family rental with real cash flow instead of hoping your Katy rental eventually fills.Not saying you should walk just yet, but if leasing drags out longer than expected, would you consider selling and reinvesting somewhere with better returns?

When I returned she was ready for our first house hack. 

It looks like a great idea on the surface but the numbers don't stack up from a risk/return point of view as far as I'm concerned (it could be different for you depending on your return expectations).

@Tyler GarzaYour strategy has a solid foundation, but a few key refinements could help you maximize returns while minimizing risks.

This deal aligns with my strategy of adding value and achieving robust returns.

The bank does still ask for my tax returns each year and with each deal and my adjusted gross income last year was comparative to your stated cash flow from your rentals.

If you go with the partnership route1) You need to manage the money going in and out of the business bank account.2) File a partnership return and be responsible for issuing K-1's3) make distributions to you and your partner for cash flow that you receiveYou will likely spend many hours on a nice gesture.I may want to consider instead to give a christmas gift or a bonus for early completion of projects.

You’re going to make the deal based on today’s interest rates and today’s returns.

Their numbers did not always add up from the initial calls to the follow up, and I believe the returns they are offering are super aggressive.