You lowered my stress immensely by looking at this from a simplified business perspective. 

I grossly over-simplified in my response.

If I’m a passive investor, I need more than a simplified graphic. 

Simplifying life by selling one of the places may not be a bad idea. 

But I think you have simplified my position, so I want to lay it out in a little more depth, and provide additional elaboration.If I have a choice between paying someone one dollar, and receiving thirty percent back in a tax deduction, or, paying some one one dollar, deducting sixty percent of it as a business operating expense, and keeping the dollar of net-worth afterwards, I will chose the later.

The IRS has become a poster child for the problems and abuses endemic when government gets too big.It is time to simplify.

This a little humorous and really simplifies things:I found this from Alex Joungblood's Wholesaling Houses Full Time Facebook Page.

If the properties are in separate LLC's then the liability would be 'contained' within the LLC which owned the property which ended up with a judgement.It can be a little scary thinking of all the "What If" situations but as I said, for the most part your insurance will handle the majority of the liability issues.If you put all the properties into one LLC, you can simplify that down to one bank account, owned by the LLC and one set of books.

I will share with you a simplified scenario of what I'm doing below and I would absolutely love any feedback from you guys about if I'm using enough leverage, how can I leverage more, etc...Property 1Initial Investment/purchase price: 100kPurchase ARV: 150kObtained Hard Money: 95kProperty 2purchase price: 95kPurchase ARV: 140kObtained Hard money: 90kProperty 3purchase price: 90kPurchase ARV: 130kObtained Hard Money: 85k** This stream continues on for another 2-3 properties.

Another great read to help simplify your finances and reduce spending, have an emergency fund, reduce/eliminate debt is Dave Ramseys "Total Money Makeover".