It feels more like a precautionary practice with very little cost.

Make sure you have copies of the leases and applications, and that you get the security deposits transferred over to you at closing, and the rents collected for the closing months should also be prorated and credited to you.  

Leveraging Seth's local market expertise, we secured the property for $310,000.

Diversifying your portfolio can reduce risk and potentially increase overall returns.Opportunity Cost-You might miss out on potential opportunities to leverage your equity and acquire more properties, especially in a market where finding cash flowing properties is challenging.Pursue a 1031 ExchangePros:Portfolio Expansion-A 1031 exchange allows you to diversify and increase your investment portfolio by acquiring multiple properties.

Rents stagnated or dropped in most areas, and this is on top of all the rising costs, especially insurance and interest rates.

So is forming an LLC and getting an EIN to set up a business checking account to receive the security deposit and collect rent payments a good idea?

Row housing halves the cost to repair the wall water on a per unit basis and there are obvious additional values to having proximity to all units. 

There is no cost to you to do this.

It is effective Aug. 1, 2024.This ordinance is referred to as the Source of Income Discrimination Ban Ordinance" - which is identified in File #231019 and amends sections of Chapter 38 (Civil Rights) and Chapter 34 (Health and Sanitation) in the Missouri Revised Statutes for the purpose of classifying source of income as a protected trait in regard to housing discrimination.Here are some key takeaways from the attached ordinance:This ordinance bans discrimination against tenants based solely on:Source of income from an occupation, including gig work or paying rent in cash Use of public programs like Section 8 Housing Choice Vouchers, disability checks, or social security Poor credit score Prior evictions and alleged damages older than 12 months (less than 12 months can be a basis for denial) Prior convictions or arrests (sexual and violent crimes are excepted, a landlord can still deny based on these convictions)The ordinance also requires the city to proactively scan for rental ads using discriminatory language like "no Section 8" or "no past evictions".Landlords who are found to be in violation of the ordinance with respect to source of income can be fined up to $1,000 per incident.

On the 1099 securities form it shows about $4k gains.