In my opinion, if you have investment properties you want to protect, or isolate from each other's liabilities, the LLC is non-negotiable right then and there.

Deal makers-  more than one road side, shape of land relative to road access, nasty properties, market availability, boulders, water- you can make ponds, trees, walk out basements, isolation or access, Texas interstate traffic is not your market, look at loopnet or Crexi- look for the oldest listings.  

Fixed rates averaging 5.7% for GSE loans make multifamily development the most attractive financing option available.The Perfect StormThese forces aren't developing in isolation—they're reinforcing each other.

I typically see many investors using an LLC to also protect their interest from any personal creditors and to isolate out any future liability if you have to take over the property during any foreclosure proceedings if the other party does not pay.Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice.

The only way to isolate your personal lines is to insure the rental properties on pure commercial lines policies that don't do any personal underwriting, insurance scoring, etc.

Once a liability event occurs, it is often too late to do anything to mitigate it.Have good insurance from the start, and consider setting up an LLC structure to protect yourself from investment liability, and to isolate liability so your whole portfolio is not affected by one event.

Are the properties isolated or cross-collateralized?

If you can't isolate each individual unit then you are going to have to start with the obvious and usual culprits, which would be toilet, dripping/leaking faucet, leaking outside hose bib.

(If it's isolated I'd be much more comfortable allowing extras!)

This can help create barriers to isolate out both kinds of liabilities and what assets they can go after.With regards to lease agreements, we definitely recommend having a comprehensive lease with lots of protective provisions as well as doing background checks as part of the application process for it.Note: This information is for educational and informational purposes only and does not constitute legal, tax, financial, or investment advice.