Should I create an LLC at this point to protect my personal assets and tax planning?

Lenders often prioritize the person’s payment history hence it is imperative that you maintain proper financial records.Good luck!

If you do rent by the room watch out for local unrelated person ordinances.

While they were a few minor incidents, like the tenant refusing entry to the appraiser due to COVID concerns or issues with fixing things that showed up in the inspection, Eric helped sort it all out in the end, and we got them resolved.

However, when you rent out a portion of your home, you need to make sure you're properly dividing any expenses you pay to maintain the home between personal and rental uses.

I do believe for what you clarified from your original post that breaking even is okay and you'll be using it for personal use that you can do this. 

Personally, I'd recommend multiple properties, but that all depends on your long term goals.

House hacking will also give you some personal "property management" experience.

I personally have success in doing flips with my partner here in Ohio.

You made the mistake of trying to treat her like a normal, honest person.