So if you combine them you are essentially doubling your liability while also increasing the potential loss if there is ever a lawsuit. 

Would you suggest filing for an eviction or filing a lawsuit claiming she s breaking the lease early?

Many of the HGTV celebrities that run seminars are being named in class action lawsuits.

@James Baker,You downside is incredibly high (lawsuits--injury/death,etc, all the worst of the worst things), and your upside is incredibly low, because as others have mentioned.. it's Michigan-- it's not year round use, it's a few months, if even that... 

I heard a BP podcast example where a guy had built a rather nice real estate empire, only to have it taken in a lawsuit when his son killed someone in an accident.  

When we sell the home, the door will be opened and it can be a functional single family home with a mother-in-law suite.

Another thing to keep in mind, if the property is in Illinois, the laws of illinois will apply to just about any law suit you may face, so if you're going to use a NJ LLC, don't plan on relying on NJ laws. 

Most likely the state where the property is located is where lawsuits would be brought if they are something for personal injury like a trip and fall or something of that nature because the “cause of action” arose in that state.

If you have quads or larger i was told one LLC per.The reason mine re split into 2 right now is because some of them are inherited from my patents so the thought of losing them all due to a lawsuit was too much.

Take a look at the news paper and look to all of the high dollar mortgage banking lawsuits and you will see some of the billion dollar reasons to pursue such things.Just because the houses of cards has not fallen yet, doesn't mean it will not and the more of these that get stacked on to the already fragile pile, I would argue, like the same house of cards, is just more reason to suspect it will sooner rather than later.