bone up on your tenant landlord laws its all in the books what you cant and can do.. but even in jest what your suggesting while prudent 30 years ago.. ( like we would just remove the front door)... wont work today.

I know that everyone is oversold in putting their asset on LLC, but there are some strict rules you have to follow to actually get the desired asset protection. most of the small business dont follow unintentionally. 

Will depend on several factors like the type of property, type of tenants, your risk tolerance, other assets you own, your estate planning, laws where the property is located, etc.Any lawsuits would be limited to the assets of the LLC and not your personal assets (assuming you run the LLC appropriately and the corporate veil is not pierced).

I've also thought about the idea of buying a single family home with an in law and renting that out.

If the law allows, choose it yourself.

@Chris Ayers I don't know your state's fair housing laws, but here in MA, receiving any form of public assistance is a protected class.That means it's an area where you have to tread VERY carefully. 

Because so many people commit mortgage fraud to get that 1% difference in interest rate bank underwriters have gotten strict on additional purchases within a local commuting area.

Also you need to understand state laws as in some states you have to foreclose vs. forfeiture and need to make sure you understand timing and cost

The bank basically told me it's against the law and to get on the mortgage with her and accept a higher interest % or sell her stocks/bonds to prove she has liquidity because she doesn't personally have the funds for the Down Payment.The situation really blindsided us because we're ready to rock n roll and now we hit a brick wall.

The thing is, WI law says a landlord must provide 60 days notice if a 12 month is going to be renewed or not - the lease says nothing about this either way.