Cold feet before first deal

[Tyler Duniho]

Hi everyone. I've been a lurking member of BP, as well as other FIRE communities, for many years. My main form of investing has been index funds but over the last 6 months I've been on the search for my first rental property.

I am on the cusp of making an offer on one of two properties. One is a duplex (120k with 1500$/month rent with both units rented), which I would house-hack, and the other is a SFH (60k with 700-750/month rent), which my wife and I would first live in for a year for better financing, then move out to find our next investment property (live-in-flip-rent strategy). I am confident in the cash flow numbers and know the theory of REI, but the one part that is tripping me up is personal liability.

Because I am purchasing these with owner financing, I will be unable to move them into a LLC for some time, if ever. I know there are ways but they are not trivial. So barring that, what options do I have for protecting myself and the wealth I've built over the last 4 years?

I love that REI offers the opportunity for reaching FI quicker due to leverage and rents, but I don't want to lose my shirt, either. My stocks will never sue me.

Am I just getting last minute jitters (though, of course, with the SFH we actually have a year until we first get teneants)? Is there a comprehensive way outside of an LLC to protect myself (ensure renters have insurance, umbrella policy, comprehensive rental home owners insurance for house hacking)?