If we are purchasing properties when the market is a highly appreciated seller’s market, we need to realize we may be in DUMB DEBT and should be prepared for the risk of suffering the consequences if and when the economy turns for the worst and goes into a recession as this will likely cause values to drop.

This provides you protection and gives the lender a clear exit strategy,.

A combination of extremely tough long term tenant protections and the economics of short term renting being a lot more attractive. 

Way simpler and more protective for everyone for about $30/month.Out of curiosity, will you be at red stick REI in January?

These types of agreements can get a little in-depth, but that is what you want for your protection and that other partner.

Many people in consideration of #2, take steps to protect the assets so that Medicaid cannot take those assets like a home.

That being said, anything can happen, but if you run your numbers accordingly, make sure that your contractor is trusted and do all the other stuff you'll be a little more protected than the next person flipping that does not do this type of calculation. 

Asset Protection Trusts don't protect assets?  

With some humility, I’d like to say it’s keeping the finances separated/organized and liability protections, or everyone’s favorite question… do I need an LLC?

A lawyer might be able to answer this better, but most rentals fall under fair housing laws (there are exceptions) and that protects against discrimination based on familial status which means children or someone who is pregnant.