Hi Raj,Depending on the program you qualify for, lenders may use your personal financial statement - and thus possibly take your liabilities into account.

Get extra liability and call it good.

Smith, Grantor, hereby sales and warrants unto Tom, LLC, a Limited Liability Company created and existing under and by virtue of the laws of Washington, whose principal place of business is 123 Smith Street, and Mike LLC a Limited liability Company created and existing under and by virtue of the laws of the State of Washington, whose principal address is 456 Jones Street, Seattle Washington 12345, Grabtees, as Tenants in Common.

You'd have to find a person familiar with MN tax laws to address how the CA-sourced income would be taxed on the MN returns.As to the LLP/LLC question, LLPs require a general partner, which usually has unlimited liability. 

An asset protection lawyer would likely recommend a separate LLC for each rental property you own because this limits your liability in case of a lawsuit (usually to the holdings of that LLC). 

Lots of changes lately with everything going on with the NAR lawsuit, many other lawsuits, and the huge uptick in scams not to mention increased risks of personal safety for agents, increased theft at showings and open houses, fake sellers, fake buyers, fake agents, fake landlords stealing security deposits, wire fraud etc. a lot of agents are getting caught up in these things and have a lot of legal liability so brokerages are shifting the way they do business and developing safer protocols.

It can protect you from tax liabilities but used the wrong way like over leveraging, it can kill you.

Either way, I will call but wanted to see if anyone here had any knowledge....It will likely increase your insurance rate because of the business activity/liability. 

Personal and Professional Liability - Florida’s premises liability law requires landlords to maintain their rental property and protect their tenants and their guests from harm.

Federally backed mortgages cannot be called due on sale if it is a transfer to an entity with the same beneficial owners provided that the insurance is properly updated.But this naturally begs the question - if you're adequately insured, which means letting the insurance company know about the entity, that you're operating the property as a rental so appropriate liability limits are written WHY both messing around with the LLC at all?