I realized it wasn't enforceable since there was a no eviction order in effect, but in a lawsuit it would have been helpful.That's the other thing.

You will definitely be named in any lawsuit and you will have a lot of time and emotional energy wasted.

Check up on that law before posting advertisements or you may have a lawsuit on your hands.

There are properties now that have in-law suite built in garage already. 

Are you saying you want your property manager to go ahead and spend $800 to $1000 of your money on an eviction lawsuit, and then wait another 6-8 weeks (at best) for the lawsuit to work its way through the courts?

In fact, when I took a First Time Home Buyer's class years ago, one of the speakers invited us to apply with them if we wanted to be a "mystery tenant applicant".There was recently a landlord in a nearby city who lost a 6-figure class action lawsuit because he had been discriminating against minorities.  

The basement we plan to finish as a studio with full bath and kitchenette, "apartment"/Mother-in-law suite so that we can rent it out and house hack. 

One lawsuit can easily wipe out everything I have.  

I'm also very interested on how it works and how vulnerable it is when it comes to lawsuit.

Unfortunately, there are times when both the LLC and the individuals can be sued in Texas (it's referred to as "stacking lawsuits").