There're many variables involved, but it mostly comes down to what are your goals for the investment and what level of risk are you willing to endure. 

Why endure the legal expense of setting up the LLC and perhaps pay an accountant to file the necessary tax returns each year?

A person would ask themselves what THEY can't do, pull-off, deal with, endure. 

Building a truly profitable business on the other hand takes enduring skill, patience intelligence and effort.

@Alexander Szikla This thinking is appropriate sometimes, but in this case the moose has already endured an avalanche.

Myself, I endured a thorough lashing by my CPA on how I should have booked some more write-off's, acquired some book losses, yes I 100% would have LOVED to had some more deal with book losses.

@Chris Martin how would you respond to the thesis that market deviation from this long-term trendline will endure (maybe not to the current extent) in fast-growing cities like Raleigh because of American population movements in the aftermath of Covid and remote work? 

Sometimes you get lucky but it's gonna be question of endurance with these things.

It's better to find out now that they can't afford your place than to endure brain damage for several months and find out they can't afford it.I guarantee if you enforce the late fees this time if will greatly decrease your chances of getting late rent in the future.

For anyone who rents to military or ex-military (which I do since we are on the Canadian border and have lots of Coast Guard and ex-military Border Patrol, the delays they endure for regular pay, GI bill payments, etc. is regular, routine and is not always because of a gov't shutdown.