From personal experience, you could wake up swimming in a foot of water! 

The problem is that the defect may or may not be covered by the deed warranties and if it is not then the title company may elect to defend you against the suit your LLC filed against you. 

Never thought an in-law suite would be this big of a deal.I checked out your website btw.

Have you thought about adding a garage with a mother-in-law (MIL) suite above it?

Our plan is to turn the lower level into a master suite by expanding the half bath there into a full bath.

The rest of the property is under a portfolio loan with a local bank at 4.5% 20 year am with 25% down.The main home has an attached MIL Suite, that I will occupy.

I'd agree with a lot of the above posts as well but would sum it all up with this: Rent- study the local area rents and price according to your finish, location, terms and competitionTerm- go with a lease term that suits your business plan but consider the tenants' demographic as well (professional looking for short lease, family looking for long lease, college kids looking for the rest of the term...)Qualifications- I look at WHY credit is bad and use that more than the number. 

Or would she be better suited to more passive options like syndications?

Even in the fall when it is too cold to swim.

And while they do offer a suite of services for their licensees, they left a big wake behind and are cutting back on a lot of things now.