Just keep your property in good repair and have insurance including maybe an umbrella policy.You might want to read this post about LLC's misconceptions:  https://www.biggerpockets.com/...Read this one about "frankensteining" your TItle and mortgage:  https://www.biggerpockets.com/...Also, if you rush to switch to setting up a LLC, is your financing prepared? 

That puts me at 89k cash out but with high rates thinking about only taking the 72k to cover the debt leaving 17k on the table for a line of credit with a local community bank that I would do the HELOC with… thoughts, pitfalls, misconceptions, and recommendations welcome.

If all they know is fix and flip, wholesaling, or buy, hold, rent it will take overcoming some misconceptions. 

@Ethan Kohler   VERY common misconception. 

“There is a misconception that people fail in their real estate investments because they didn't buy the right property or it wasn't in the right location,” said McClelland.

The misconception is that ARMs always adjust negative, its market dependent so in some cases it can adjust positively. 

Another misconception this that you can dry in all homes in half the time.

@Armando DeGuzman You are under a misconception....the lender can’t just “take it back thru foreclosure”...the last step of Any foreclosure action is a public sale/auction.  

Common misconception in NJ.

The common misconception, is that you can just use the property and rent it while you are not there.