The parties acknowledge and agree that neither party shall have any liability or obligation to the other with respect to the matters set forth herein unless and until a definitive PSA has been executed and delivered by both parties.ConfidentialityThe parties agree that all information exchanged pursuant to this LOI and the negotiation of the PSA shall be kept strictly confidential and shall not be disclosed to any third party, except as may be required by law or as necessary to obtain third-party consents and approvals.We trust that the terms outlined in this LOI are acceptable and look forward to your favorable response.

Or is the liability concern too great?  

An LLC provides no credence to a given tax position - it is primarily just a means of legal liability protection.

But, an LLC will not limit you from liability in total.

We would like to obtain rental properties to generate passive income and hold via LLC (to reduce legal liability).

People don't realize the mounting capex liability, it is almost invisible until it's too late.

There is fire wood left in the backyard by previous tenants and hope not but what if snakes starts living there and bite the tenant will it be our liability?

Additionally, is this a non-recourse loan, meaning the borrower has no personal liability beyond the collateral?

Always hire a PM, it's not just time it's also liability.

I think I understand it from the legal protection point of view to not draw money from the LLC account to my personal and then pay as it creates legal liability when I mingle the two.