Aside from the retirement fund goals, we are making some home improvements, including adding an in-law suite with a private entrance that we rent our either long term or airBnB.

This means that you will probably need to pay registration and filing fees in at least 2 states if you don’t buy CA property as a CA resident.Any lawsuits should be limited to the assets of the LLC and not your personal assets (assuming you run the LLC appropriately and the corporate veil is not pierced, some debate as to SMLLC).

There was a recent thread asking for results of actual lawsuits to their LLC. 

Our standard email with the bid states, please contact us to discuss & redline to your budget.The only thing we will require are health & safety repairs, to avoid a lawsuit.

His lawsuit is really flimsy, but who knows when it will get resolved. 

If you fail to follow the rules, you may open your personal assets to a lawsuit.

You would want to make sure your insurance is buttoned up as that is where you would get hit if a lawsuit happens. 

I am involved in a lawsuit right now solely based on the fact that Renter's Warehouse failed to fully pass on communications between me and the homeowner. 

I am sure we'd find lawsuits and dirt with a very moderate dive into them.

If they move out, then you can spend the money to renovate the unit.Lastly, be sure abide by any discrimination laws to prevent potential lawsuits.