And/Or@Stuart Udis's prudent advice (I certainly agree with) should be followed re: effective, pro-active management to reduce your overall risk.For more button-down: umbrella insurance policy.

From my experience, the most important things early on are keeping your deals cash-flow positive, running the numbers on every property, and having a solid plan for value-add opportunities, think small updates that can increase rent or reduce vacancies.

Those can be more expensive but reduces your living costs and will be cash flowing when you move out.

Also in the state of New Jersey, I have been creating my own operating agreements, I just want to confirm that I am doing the right thing.Thanks in advance As other people already mentioned, you most likely will not reduce your taxes at all with LLCs if you are planning to merely hold rental properties.

If they insist they will only sell for $xxx, come back in 6 months when they reduce their number.On one property, I offered $110,000 for a pre-foreclosure, because that was what it was worth.

Reduced Vacancy Risk: If one tenant moves out, the others continue to pay rent, which significantly reduces the financial impact of a vacancy compared to renting the whole property.

By proactively planning how your investments are taxed, you can significantly reduce your overall tax burden and position yourself for greater financial flexibility.Equally important is establishing a strong asset protection plan.

If they cannot afford the new rent and intend to leave, tell them you will reduce the increase initially if they give you access to work on it.

I second the house hacking idea as a great way to get started and reduce your living expenses. 

There are strategies that you could do to try to get future paper losses reducing your active income, but those require you to change your income-earning activities.