But if its not related to that type of water damage, the other questions ask about present tense issues, and not past issues.

Why is this an issue?

What issues would there be if I put MY NC house in the LLC that has his name and my name on it?

Since you’re considering converting the upper unit into a short-term rental, you may also want to implement strict rules around smoking or strong odors in your house rules to avoid future issues.

@Rachel Jane a lot of issues here to consider:1) Does the condo association even allow rentals?

The challenge with S8 in this scenario is you always have a piano over your head and all a tenant has to do is call the code office to create an issue for you. 

Your main issues will be eggress, as usual in a basement.

Also, if it's Lennar, be prepared for problems, insulation issues and therefore paper thin walls. 

We don't have any issue getting it booked up for the season.

That does not mean there aren't issues to consider.