Why not just lock access to the rest of the house from the in-law suite and rent it out instead of converting to a duplex?

You willreceive respect from your tenants because you are professional, and youwill receive respect from the courts and the community as well.In this business, it is very important to protect yourself from lawsuits inevery way.

You file a complaint for adjusting in bad-faith, which helps set you up for a lawsuit later when you may be able to recover your legal costs.

From my point of view, your best case scenario is a smaller selling pool, with worst case scenario being a lawsuit for discrimination.I imagine the LGBTQ community, when they wanna buy a house, will hire a realtor who will use MLS to find them a house.

I would be especially careful when dealing with business and family.Lastly you should research partition lawsuits, and the consequences of equal business ownership structures.  

In that foreclosure lawsuit the owner has one last chance to redeem plus pay your legal fees, otherwise the judge gives you the property and quiets title in you. 

The liability of lawsuits in a TIC makes every co owner responsible and can affect an owner not limited to that particular property.

It can be done in a day if you are willing to do the foot work.Also, be aware, if you are going into a law suit a divorce or are in a law suit that LLC will be able to be pierced by any attorney.

Finding a property with an in-law suite that can be sourced as an STR?

Lawsuits can be in the millions.