legal 2 family house but it has converted to a 3 family with separate utilities, egresses, smoke detectors, etc.

With separate meter tenants directly get billed for electricity and gas.

Presumably, the big front room downstairs would be the master bedroom with separate exterior door; however, you have to pass through a living room and kitchen to get to the house's only bathroom!

LolIsn't the deposit a separate thing though?

@Paramvir Singh That is a fantastic idea, and would definitely separate the buyer from other buyers in a good way. 

Both properties were 75% LTV loans and separate, so I can sell one without it affecting the other.

With an LLC, I keep separate bank accounts for the property so funds are not intermingled with personal assets.

My basement will have a private entrance and will be completely separate from the rest of my home, with a few locked doors in between me and my guests.I've been informed that I might not be able to use my current homeowners insurance policy. 

@Kayhahn Alikhani Generally, it is best to separate rental activities from non-passive activities, like a real estate agency, flipping or wholesaling, into different LLCs.  

(not your responsibility, whether it is food or a table).What I would be concerned is if you have 2 separate leases with these students instead of 1 master lease agreement.