Otherwise, you'll go broke trying to defend your LLC.  

The Plaintiff had named the condo association as a Defendant who had filed an answer that didn't dispute the Master Assoc right to foreclose. 

It increases complexity of bookkeeping and is much more challenging to defend in an IRS audit, but it is legally possible.In your specific situation, it appears quite likely that your property might be treated as non-dealer and use the capital gain treatment.

If you can defend, you don't have to worry about it.  

Make sure you have all the systems and insurances to defend them.

Are there policies available that will defend litigation?

If your LLC own's the properties, you will need the same since you need/want the insurance company to bear the legal costs of defending your LLC. 

If hey'd be willing to defend it in court, that's the best sign.

How are someone using the internet as a source going to defend their actions in court?

Floyd Mayweather said that he learned something new from boxing everyday and he was the undefeated champion for more than 16 years when he made that statement so always things to be learned.