Separate LLCs for each property or... ?

[James W.]

I recently purchased a portfolio of 11 properties, all duplexes and low B to C- class.

Being new to this particular business, I figure I'll make some mistakes... so I played it safe and set each property up as a separate LLC.

The tenants pay their rent to a 12th LLC, which is the "Property Management" company.

I have $500,000 in liability/replacement insurance on each property, plus an additional $1,000,000 umbrella policy over the lot, which gives me 1.5MM in coverage for each property should I need it. (Hopefully never, but who knows.)

When I met with my tax and legal advisors, they all agreed that I'm probably being overly cautious and I could have formed 3 or 4 LLCs instead of 12, and divided the properties into a smaller number of LLCs - but none of them could say they had done a deal like this themselves, so I opted for what I consider the safest and most protective route.

With all that said... how do you all handle multiple properties? Separate LLCs for each? What is the best way to use a "Property Management" LLC?

ANY relevant advice is welcomed.

TIA!