Umbrella policy vs LLC - commercial

[Andrew S.]

Hey everyone,

I've been holding a house hacked duplex and a 6 plex that I purchased with a commercial loan a couple of years ago, both in my personal name.  I do the property mgmt and most of the maintenance myself.  I read about the lack of separation between myself and the 6 plex based on myself doing most of the work.  I've been keeping a $1M umbrella policy + 300k liability with home owners as my protection.  

I believe my commercial loan can be transferred to an LLC without any issue. If I were to get sued in my current situation - I believe the case would have to be above $1.3M before I would have to personally pay out / potentially lose my properties (or other assets).

Curious if others are using a similar strategy? Do I gain any real protection if I transfer my 6 plex to an LLC? I assume I'd have to be diligent then to keep financials separate, do additional taxes, etc.

Thanks