Just the other day, incoming Treasury Secretary Scott Bessant was asked about ending conservatorship, saying “[concerning a Fannie and Freddie release,] …anything that is done around a safe and sound release is going to hinge on the effect of long-term mortgage rates.”

They can ensure everything is safe and, if you attend the inspection, they can educate you on what to watch for.

I don't personally have an umbrella policy but if you do want to be extra safe, yes, I would recommend an LLC and umbrella policy together. 

In addition, you would need enough working capital to pay for insurance (which will be going up a LOT in Los Angeles) and to pay for property taxes.Don't buy this unless you have substantial resources and a cash cushion to keep yourself safe.

Take care and stay safe!

Your not correct under many different circumstances.First property tax is 1.1% (fairly safe) with 2% annual increase (prop 13).Next expenses include a lot more than property tax and interest. 

Make sure the location is safe first.  1.  

However, i've never really seen the logic in taking those paths when you can just take the safe and slow approach. 

It’s the only safe way to scale and cash flow is most definitely NOT a myth.

Though, it is always better to be "safe than sorry".