Hello -I am looking to buy my first rental property and am considering taking out an umbrella insurance policy in liu of an LLC.This decision is purely about protecting my personal assets.

You can do LLCs or you can do an umbrella policy... it really depends on how many properties you have. 

Account ClosedFlipping houses in an IRA has the potential to create tax liability inside the IRA through UBIT if done regularly.If you take an early distribution from a Roth IRA, the initially converted basis can be withdrawn tax-free, but any income above the basis will be taxed as regular income plus the 10% penalty.I would not recommend this strategy.A self-directed IRA is a means to diversify an IRA for long term wealth building in a tax sheltered umbrella. 

@Will Grabert Agreed an umbrella policy in addition is necessary.

Four properties in my personal name with a 2 mil Umbrella policy.

They also didn't have an umbrella (another wealth coverage) (I bought one the next day).To date she hasn't had a suit come her way however she could get sued as many as 5 years after this event.

Focus on the things that put money in your pocket, not things that take away from it.But always get an umbrella insurance policy; that's your best form of protection there.If you're still wanting to get an LLC, I'd recommend @Scott Hildebrand. 

I would definitely purchase an umbrella.

Just like investing in the stock market, however, all such activities are exclusively under the umbrella of the plan and not for your current benefit. 

I currently have a two million dollar umbrella policy on top of rental property insurance with limits set at $500,000.