Second, listen to the market, don't second guess or try to predict it in the short term.I check the daily forecast, but keep an umbrella in my car just in case.   

In addition to $1 million liability, I would recommend that you buy a personal umbrella policy that extends to the rental.

.• Many investors hold CA rentals in their personal name (with strong insurance/umbrella coverage) to avoid these fees, unless liability exposure is a big concern.• From a tax perspective, LLCs in CA are pass-through, so the income and depreciation still flow to your personal return.Texas rentals:• Texas doesn’t have a state income tax, which makes holding STRs here more straightforward.• An LLC in TX can give you liability protection without the heavy franchise taxes CA charges (the TX franchise tax only kicks in above ~$2.47M revenue in 2025).• If your STRs qualify under the STR material participation rules, you could use bonus depreciation to offset W-2 income—LLC ownership doesn’t take that away since income still flows through.Cross-state strategy:• You don’t necessarily need one LLC per property—many investors group properties (by state or risk profile).• You could form a Texas holding LLC and register it as “foreign” in CA if you want uniformity, but this means you’ll still pay CA’s $800 tax per year.• A common approach: keep CA rentals in your own name with strong insurance, put TX STRs in a TX LLC, and avoid mixing states in one entity.Tax angle:• Whether you hold rentals in an LLC or personally, depreciation, expenses, and Section 179/bonus depreciation still flow through to your return.• The entity affects liability more than taxes—unless you elect S-Corp treatment for active businesses (not usually recommended for rentals).This post does not create a CPA-Client relationship.

There are other methods too, like double closing, but they all fall under the umbrella of wholesaling.

I would caveat one other cheap effective asset protection piece: get a good umbrella insurance policy. 

For now, simply increase your homeowner's insurance liability coverage to $500k-1M and get a $1-2M umbrella policy (costs about $200-400/year), which provides better protection than an LLC for house hacking situations.Local Volusia County Concerns: Property taxes in Volusia County average 1.1-1.3% of assessed value, and without homestead exemption on the entire property your taxes could be higher than expected—confirm the exact annual tax amount and whether homestead will apply.

I consider it the same way I do the umbrella insurance policy.

I have both umbrellas and LLCs so I'll give you different perspective.

Just make sure you build a solid team on the ground (agent, PM, contractors).Most investors buy their first property in their name since financing is easier, then use solid insurance/umbrella coverage for liability until they have enough units to make an LLC.

Use buy-sell/deadlock clauses instead of letting a court force a sale.Insurance & Risk: Set minimum coverages (property, GL, umbrella).