Hi Kenny-Great question about whether you should put a house you plan to live in and rent out parts to others in an LLC.Certainly putting it in an LLC would help with asset protection and limiting personal liability.However, you may lose the ability to claim the part of the house you live in as homesteaded tax rather than the higher non-homestead investment property tax for the entire property in an LLC.

He thinks they can rent each room out for $800 for a total of $3200/monthHe has offered 10% for me to manage the renting of the rooms to the tenants and to take care of the lawn and snow.This initially sounds low to me. 

Originally I listed the property for rent around $1,700/month and the interest was very low.

Purchase price: $550,000 Cash invested: $1,050,000 7-unit new build to rent What made you interested in investing in this type of deal?

Some thoughts - garages or carports, for extra income from tenantsIf you have the ability to add a second driveway, consider trailer / boat / rv storage in an area enclosed by a privacy fence, or even garages to be rented to non-tenants for cars / storage.

You might use different strategies to increase the income from the property.

This area is notably affordable compared to others in the city, with property values experiencing significant appreciation—increasing by 100% over the past 7 years.Thank you for any insights or advice you can provide.

Otherwise a typical DSCR loan based on market long term rents should be sufficient to qualify? 

At least in terms of rent, college students are paying 1100 - 1600 to rent by the room.

These updates modernized the property, improved its curb appeal, and significantly increased its market value.