JoanneYou can simply up your liability coverage on properties 11+ 

Unless the contractor has professional liability coverage, not many avenues for recovery and even then its a long and costly process assuming the carrier picks up coverage. 

I did an LLC so I could build a brand - it's to limit your liability, it's really up to you.

I later unwound the whole structure and went with $500K liability per property and a $2M umbrella. 

Here's a PARTIAL list:Office rentComputers, printers & softwareInternet & phone billOffice furnitureOffice supplies: paper, postage, ink, etc.Office liability insuranceAuto expenses: monthly payment, insurance, gas, maintenance, registration/plate feesBroker license fees: annual, monthly board & MLS fees, continuing education fees, E&O insuranceEquipment: lockboxes, signs, etc.Business income tax preparation and paymentsStaff payroll & payroll taxes Time Tasks: answering phones, calling past due tenants, scheduling tours, taking marketing pics, processing those pics, writing ads, researching rent amounts, posting ads, explaining to owners how rent determined & showing where ad posted, opening & processing mail, posting payments, bank deposits, scanning documents & posting to owner & tenant portals, explaining accounting to owners so they understand their monthly statements, taking pics/videos of repairs, finding reputable handymen and contractors, confirming they're properly licensed & insured and tracking annually, verifying repairs done properly, processing invoices for utility bills, repairs, taxes, city inspections, scheduling periodic property evaluations/inspections with tenants that don't want strangers in their homes, explaining to owners why taking so long, and more & more & more...

This could potentially reduce or eliminate your state tax liability on the property with a gain. 

Lots of folks think they're protected with the LLC, but they're inadequately insured and can't cover liabilities they're trying to be protected from.

Currently, they are posting to the loan liability account only: From the loan account > draw bank account as a transfer in QBO.TIA!

Companies can vary widely in how they do things, the types of liabilities they have such as staffing, rents, notes, among other things, which play significantly into profit margins. 

My two cents:I tried for 6 months to find something worth investing that would not become a liability for me in California.