Rental Real Estate Mortgage in LLC or Personal Name?

[Warren E.]

Howdy all:

Buying  rental real estate property. 2 options for mortgage:

1. Mortgage in my name: 30 yr fixed rate 3.5%, is in my own name. Get lots of general liability and umbrella insurance covering property, run all rental business through LLC name.
2. Mortgage in LLC name: 4.5% 5 year ARM, resets every 5 years to T+3%, ceiling 9%, 25 year amortization.

What would you do? Have heard totally disparate advice from lawyers/real estate investors I trust and know are successful. Some say do option 1: lock in cheap cash as rates only going higher, fixes the MAIN variable in cashflow for property, and lots of insurance is cheap will ensure personal assets won't get touched. Also, LLCs can be easily pierced. 

Some say do option 2: Don't be penny wise and pound foolish and risk $5MM in personal assets for a $400k rental investment. =