I would find the property and put the title in my and my spouses name and make sure you have a good insurance policy on the property and a good umbrella for yourself.  

1 bank account, 1 umbrella policy, 1 LLC, Dropbox, mobile phone, beat up Ford Ranger, Cozy, MyZillow, and contractor team. 

We're already aware of and plan on purchasing umbrella insurance to protect our personal assets.Does the fact that 2 of us are in CA mean that we'll incur CA's huge ($800) LLC tax?

I do have a personal umbrella policy and the mgmt company with liability insurance and in an LLC. 

I found that if she buys umbrella insurance policy now...it wont cover that accident ...I also found that putting her home in new single owner LLC in her name is not a good idea because of loosing homestead exemption and capital gain exemption.So what is best option for her ..what about Qualified personal residence trust?

Some feel fine holding in their own name with an umbrella policy.

I would also make sure that you have an umbrella policy personally.

Best thing would be if you could sell it, as it is so far from your location, but if that's not possible, I would suggest dealing with all issues you find and then getting more responsible tenants.Also -- and this is for all landlords out there -- I suggest getting an Umbrella Policy; this only costs around $20/month and can give you additional peace of mind.If you have any other questions, please feel free to write me.

after much research about LLCs and rental properties and umbrella policies I know the extremely conservative approach is to have each rental property in its own LLC. 

I also hear this is not likely if you are loyal and make your payments, but it sounds like a big risk to me.Others have mentioned getting an Umbrella policy to cover you.