If your home is worth less than the exemption value, you can't lose it in a lawsuit. 

Previous owner added a mother in law suite with separate entrance to the property and was renting it out.

Hello all,I having been searching for the ever elusive duplex to House Hack in Denver and have made few offers but no luck so far.I have been finding a lot of nice homes in Highlands Ranch with walk out basements and Mother In Law suites.

Have you ever had the privilege of negotiating a settlement agreement in a lawsuit?

I talked to an attorney who looked over my current situation (1 LLC) and recommended instead of having one LLC holding 15+ properties to divide them among smaller LLCs that contain fewer properties to separate them in case of a lawsuit.

I was also introduced to finding a house with a split basement or "mother in law suite"  that we would be able to rent out, along with this she would also be able to get a roommate and cover almost all of the mortgage or more. 

Ideally you want to have the least amount of equity in the property to avoid lawsuits.

I have been told that I would have to file a lawsuit against him.

You can fatigue them by requiring certified copies of certificates, proof of animal immunization shots for X disease(s), frequent health inspections, frequent property inspection, etc.Or. you can seek legal assistance in drafting a new or amended lease terms which address these issues without putting your investment asset in jeopardy of a ADA lawsuit.

The purpose of the LLC isn't to get you out of having responsibility for the business but only to protect your other assets from potential liability/lawsuit.