It offers flexibility as a landlord to be able to offer more or less rooms as needed, protection to the landlord in that you can hedge with adding LTR or STR to the mix, and simplification to the business as your only dealing with one address.

Also another thing I will say is appreciation & value adding is a cheat code .

I'd say the logical paradigm in the question is a bit off.CRE includes everything from airports to golf courses to hospitals to campgrounds.So saying "residential versus commercial" is like saying "bacon versus plant life."

Just added the "official" first meetup post in the Events & Meetup Section! 

We rehabbed the entire property and added an additional bedroom to each of the units.

We have an insurance policy on the rental house (through State Farm), that includes a personal liability section, which is essentially equal to our current net worth.Given that a tenant could sue for more than this if an accident occurred, we are thinking about adding either LLC or an umbrella policy (or both) as extra protection.Any advice on which way to go, and if LLC, any recommendations for a law firm or company the Indianapolis area?

That just has been a go to added coverage here for my clients.  

It is more complex and has added requirements such as a formal set of books just like a corporation. 

Sounds like for now the idea of eventually selling the branded account is a no-go, but there still remains pros/cons on each option and I'd love to hear what others have considered or their experience in adding more STRs/boutique hotel type properties to their portfolios.

Consider a HELOC for value-added BRRRRs or flips if you have a low interest rate.