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

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

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.

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

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.

I do not have a specific pest clause in my lease but I struggle to see how someone bringing bedbugs into my property after 6 months without them, admitting that they likely brought them in and having a professional opinion stating as much would then require me as the landlord to be on the hook financially for removal?

Personally, local is best but without knowing more about you, it might not be a good approach.

There are also a lot of questions we would have for you personally regarding credit and liquidity.

In return, try to bring value to this person.