I'm in the education phase now as I'm keeping up with the podcasts and reading Set For Life now.I am slowly working on warming my wife to the idea of using some of our reserves to buy an entry level rental home/duplex, but have also started thinking about whether going to house hacking, even if it's more on the "luxury" end with having an ADU or separate mother in law suite might be a better approach.

Three separate leases and each have their own floor.

I have a property in Daly City, less then 5 minutes from SF, which is currently being rented out by a family upstairs and has recently been vacated in the separated downstairs garage area, which currently has a permitted bathroom and (I believe a permitted) bedroom.

Both are easily verifiable and a robotic process can be written by a programmer to verify without human intervention.Again the wrong department with the wrong solution is be applied to wrong problem.  

No EINs, no separate tax return, and less hassle and expense. 

And furthermore, I believe I have also heard that it advisable to have each rental property set up in separate LLC’s.

Fyi the basement has its own separate entrance and i added a window for the bedroom to be legal.

I forgot that the appraiser had listed my previous property as both a "sold" property from when a bought it and a listed/unsold property from when I rented it as two separate comps.

There is an entire separate court system and set of laws and responsibilities that governs the relationship between a landlord and a tenant.

Usually I don't take roommate rent separately, as it always causes problems, but you are essentially only talking 50% and deferring the rest with no late fee.