It helps maintain clear distinctions between the entities.Liability Concerns:If all the LLCs are reported on the same Schedule C or E, there could be concerns about the separation of assets.

Do you see the distinction?  

Although I've seen quite a few if not the majority of folks use those terms interchangeably, we certainly see all 3 as very distinct/different and all 3 have their own subset of varying versions.

That's our little Detroit, (no offense Detroiters, just trying to draw a distinction between your place and ours!)

The rules for mobile vs modular (aka prefab) homes are quite different, so make sure you understand the distinction and how it is applied in your area

A real estate attorney doesn't necessarily specialize in business formation as it is a distinctly separate discipline.

@Robert Hutsell @Jason Bott is right there are geographic distinctions that can greatly vary the policy pricing, if your property is located in Del Rio, you may be in a sweet spot as far as rating structure goes! 

We've targeted this tenant segment for over 15 years.

The distinction on larger properties is between a sponsor and an investor.

Competing offers are the norm in many market segments and owner-occupants of the standard 3/2 in a decent neighborhood are routinely outbid by cash buyers (either investors or bay area transplants).What can cause that situation to change?