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.

With Amex Business credit cards, you can get 0% interest for up to a year, 2% cash back, and a welcome offer plus high credit limits without affecting your personal credit utilization.

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 personally know the area very well as I grew up there but I haven't lived there for over a decade so I know a lot has changed.

Here's a balanced approach you might consider:Given your tenant's excellent track record and the longevity of her tenancy, it might be beneficial to handle this situation with an eye toward maintaining that good relationship.

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

I had another but sold it to free up some capital and improve my personal debt position.

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

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.