Options for least exposure when moving property into an llc

[Laurel Williamson]

I am super new to learning about real estate financials, so please excuse if some of this doesn't make sense.  My husband and I bought a rental in 2022 for my college son and friends.  Due to multiple offers, we paid cash, but have a mortgage on our primary.  We have a personal account for rent and expenses.  I have read I need to set up a business account and not to co-mingle funds so I am working on that.   We set up an llc, but have yet to do anything with it. I also read I need to move the rental property into the llc to protect our other assets in case of a lawsuit.  Because the property is paid for, it is a fairly large amount that would be exposed even in the llc.  How can we limit the exposure?  Is there a way to move the property into the llc, but not have all the money in it?  For example, to take out a note to where the llc is borrowing money from us?   And if so, are there tax implications?  What are our options, if any?   

[Chris Seveney]

@Laurel Williamson

What are you concerned about as exposure that insurance would not cover you for?

In what scenario could someone sue you and take everything? What are you doing that could cause that to happen?