While it uses partner banks to provide banking services, your FDIC-insurance protection may be limited.

Quote from @Beau Guidry: I agree with all of the above and will add the exorbitant insurance costs are squeezing rental profits at the moment. 

I would greatly appreciate your input on this matter.Here is my setupPurchased property under a TrustLLC in FL owns the TrustHolding company LLC in WY owns LLC in FLI purchased the property sub-to, took over the seller's mortgage and I’m working on setting up insurance for the property.I understand I need to keep the seller as additionally insured in my insurance, but the seller no longer has "interest" (ownership) either in the Trust, nor any of the LLCs nor in the Deed nor Settlement Statement.

@Nakul PatelBest asset protection is an insurance policy, you open a LLC then you are gonna have to pay like $850 a year for it if you are in California even if it’s a LLC in another state plus other fees and costs.

Zero tax state, no insurance or property tax issues like FL and TX. 

What about legality and insurance. if using a single family home wont the town shut you down (especially if neighbors complain) also will i need a commercial insurance policy?

@DeAnna McKillop-LopezKeep it simple to start, unless you have more than $10M there is no need to do anything but by the property in your name and get insurance if the property is a single family rental.You can do all these other methods but they just cost you money every step along the way.

I have had a lot worse and never been forced to replace it to get insurance.  

Quote from @Richard Schubert: Interest rates, insurance rates, property taxes.

Insurance placement guests tend to be very last minute, often will want to sign an initial 30-day contract and then the amount of time they will extend is very unpredictable but can sometimes be upwards of 9 months.