I was informed by a few lawyers that this type of LLC has not been seriously tested in the court of law so they are uncertain as if it will add additional protection or not.

Aside from an LLC, a Trust, or a partnership, there aren't many other options for asset protection or operating under a different entity name unless you want to spent some serious time in jail.Should talk to a business attorney.

Does an S-corp provide different legal protection or do anything else differently?

Once they've lost their bankruptcy protection (or "stay") they are essentially in pre-foreclosure status.

You don’t want to risk diluting that protection or worse, voiding that protection from the wrong changes.

@Jeff Copeland:Much of your advice to David is sound, but I take issue with your suggestion that it is unethical to use conventional loans for financing properties that you ultimately place in an LLC for liability protection. Or

If they haven't changed since I've been there (over 10 years ago) they were offering up to 10 million in Personal umbrella protection or PUP.

Once the last room is finished and all the tools are back on the truck we'll go back and unwrap each room (again farthest rooms first) and lay self adhering carpet protection or rosin paper on the floors - it not only saves the new floors during showings it gives the potential buyers the feeling that you took pride in your work.

You might contact a consumer protection or tenant advocacy group in your area.

It seems like it would be a waste trying to create in a different state unless you had some grander notions of asset protection or identity secrecy.