How to reduce risk on rentals that are free-and-clear?

[Ron DeMaria]

This is a question that I've been pondering - I have a rental property that I can easily payoff but I am concerned about the risks that it can expose.

So essentially for any lawsuits or gold-diggers, I don't show up as owning the property. The bank owns it, and I feel that's a nice deterrent to have a multi billion dollar bank own it while I control it. The bank gives me a 

"moat".

So my question to my fellow BP investors is what can we do to protect our hard earned assets? 

Here are some options, I have in mind.

1. Get a HELOC on the property which will place a lien from the bank.

pro: No cost (I like this idea, plus you can pull money if needed)

con: Still will show the mortgage is paid off. Tax billings will come to you due not having an escrow.

2. Refinance the remaining small balance on the mortgage for a 20yr loan

pro: Will have mortgage lien on the property. That's nice.

con: Will show the dollar amount of the mortgage and that its small. Adds risk

Unnecessary cost on interest and closing costs. 

What else?

[John Underwood]

Some options:

Have adequate insurance on the property.

Put it in a LLC.

Umbrella Insurance policy.