So, I'd say don't worry half as much on fancy business structures as you do on contracts, I'd rather prevent a suite than limit what I loose in one. 

Don't spend unnecessary funds.

I will give you few tips in order to prevent any issues and then explain how to do your research in regards to the price per room here in Orlando.1) When you place two strangers under the same roof this can cause all kinds of problems.

If you're taking with tenants, you should do your research on eviction laws in your area and whether local or federal eviction moratoriums will prevent you from evicting the tenants if they don't leave voluntarily.  

We do a 2x per year preventative maintenance inspection.   

From the original landlord, It did not affect insurance.The original landlord placed the unit under covid protection to prevent mortgage payments while having this issue.

Lenders aren't in the business of taking unnecessary risks.

I think if you do that, you'll realize that there really isn't anything preventing you from starting with larger properties if that's where you want to end up.

I've had many rentals in CA and Ohio for over 20 years, solid liability insurance for the properties and umbrella insurance for outside risk (if/as necessary) has been way more than adequate and worlds less administratively burdensome (plus you don't pay the annual $800 fee for each LLC you own that carries on business in or out of CA as almost all do under the incredibly wide scope of CAs franchise law).Sounds like they are selling you a real Rube Goldberg special, one that's likely unnecessary for basic small landlord activities.

Don't take out unnecessary debt and work on saving money.