And I opened a $2 million umbrella policy for myself personally.

Get a landlord policy and maybe an umbrella for additional coverage.  

In theory, it would be the only income (probably not in reality, as I love notes, but beach living and tiny umbrella drinks is potentially the life for me).So how does one avoid losing too much of a return to the tax man? 

The only reason to get an LLC is for reduction in risk but even in that case you could just use an umbrella policy until you get much bigger.

Real estate falls under the umbrella of finance and past duties included identifying criminal activity.

Who are the best companies offer Standalone Umbrella Insurance in California?

Again, make sure to structure your entity properly and you may want to look into making sure that your insurance needs are covered with a professional liability policy and a personal umbrella.  

Does it make sense to start an LLC or just continue to own / buy under my name and pay for umbrella coverage.

I'm working on it.I wasn't sure if anyone had any stories of supplementing their landlord insurance for the property of an umbrella and LLC.

I was wondering if possible could i insure them all under a umbrella policy where i one pay one policy at a lower rate or what is my best option?