The insurance agent would write a separate policy if the garage were a separately lived in.  

@Patrick Schoenecker If the utilities are separate for each unit then have them pay for their own utilities in the future.

I have a career job so I have separate income  as well.

They are both knowledgeable in real estate law and LLC formations.I would think that it would be best to hold the real estate investments in a separate LLC (you can always chose a variation of your current LLC name).

Two separate issues neither of which is worth bragging about, especially on a public forum."

I'm not talking about separate LLC's for each house, I'm talking about separate policies for each house. 

Account Closed Beginning in 2013, a new 20% rate on net capital gain applies to the extent that a taxpayer’s taxable income exceeds the thresholds set for the new 39.6% ordinary tax rate ($400,000 for single; $450,000 for married filing jointly or qualifying widow(er); $425,000 for head of household, and $225,000 for married filing separately).

The other unit is vacant and updated.Utilities-All separate and tenants pay their own

@Jeffrey WolffNot an attorney but I have been told this would get pierced very easily as the LLC is not being run like a separate business.

I have researched a few but it is hard to separate the hype from the actual experience.