They can make sense depending on your tax liability, as it did for me. 

The program primarily targets corporations and limited liability companies (LLC).Take This Action NOW:To learn more,US Treasury dept, “Financial Crimes Enforcement Network”Disclosure: Janet I.

Liability.

You do for it the major tasks that appear and liability, these small tasks just are gravy for them to manage.Get a PM, you're saving pennies costing dollars.

Lastly as an illegal unit it is  huge liability if there was a trip and fall claim, fire etc your insurance may not cover.I recommend renters insurance for whoever lives there is mandatory to add another layer of protection. last option not considered is you living in the bonus unit to have a free place to live with minimal risk 

@Pat Lulewicz I've though about contacting the news channel that currently has story published about him and his business, though I'm hesitant to do so as it probably opens me up to some liability.

Other than that, be sure each quote covers what you need for a multi-unit, like liability for tenants and coverage for rental income loss.

In this case, we tell the tenants we have two requirements, one as long as we don't hear complaints and the grass doesn't touch the house that become a liability for the building, and at the end of the lease they turnover the property with the landscape in the same condition as how they moved in, then however they want to maintain the lawn to maintain that standard, we don't care.

It includes energy efficient appliances as well as a gas fireplace in the living space.The use of the accelerated depreciation strategy helps real estate investors to reduce the tax liability immediately which therefore increases their bottom line due to the offsetting of income.

In advance I'm sure people will ask why I would have it under an LLC for my first property, of course liability protection but the main reason is Taxes, I'm not trying to have the added income from the property be on my personal tax returns.