Here's my breakdown of the current prop im looking at:Listing price: $130kunit 1: 3BR/2bath 1329sqft $700monthly rentunit 2: 2BR/2bath 1329sqft $700monthly rent2 car garage used by both tenantsexpenses: 239/month taxes, 200/month water bill, 100/month insurance + umbrella policy, 50/month garbage, 5%/5%/5% for repairs vacancy and capXWith the current rents of these long term tenants it makes $132/month cashflow with a 4.34%CoCROI.

Helps to keep your accounting separate and looks more professional as well as allows you to say you are just the property manager not the owner of the property.Then I would get great insurance for the properties with an umbrella policy. 

Consider a big umbrella policy with your insurer if you plan to do this.

@Jules Amua Depending on what you want it for, and unless it’s required by law which it may be in California sometimes it’s just easier to use your name starting out and having a large umbrella policy to cover liability.

I chose a single member LLC for my property but many others don't believe LLCs are necessary and use an umbrella policy on the investments for asset protection.

You can also get an umbrella policy for yourself, which I think is a good idea as it gives you a second line of defense before you start losing assets. 

I am looking to purchase rental properties outside of the state I live in CA, and looking for a lawyer to assess my situation and provide advice on acquiring The properties via LLC or Trust with umbrella INC. 

Would an umbrella policy cover that?

Keep $500,000 liability on the house and a $1 million dollar umbrella policy and you will have little, if any, risk.

If you're going the umbrella insurance route, make sure it will cover you for several things including just the routine slip and fall (like mold or earthquake).