The goal is never to end up there, as it will cost you 6-8 months of unpaid rent and an attorney fee to add insult to injury. 

Having an LLC, S-Corp or C-Corp provides isolation of personal assets from corporate liabilities.In other words, if I own a convenience store under Me, LLC and someone walks into my store, trips and hits their head on a shelf, resulting in severe brain injury, the resulting lawsuit can only collect up to the assets of the store.Let's say that the plaintiff was awarded $5M in damages. 

Ask a liability (personal injury) attorney.Much more effective and a lot safer, you can both have LLCs inside a "Joint Venture Agreement".

There would be certainly a worse outcome and a 100% chance you would be the subject of a personal injury lawsuit.And lest anyone think being a self-managing landlord is "easy money" - I present you Exhibit A.

General Liability (for Bodily Injury & Property damage)3.

Most likely the state where the property is located is where lawsuits would be brought if they are something for personal injury like a trip and fall or something of that nature because the “cause of action” arose in that state.

From building code violations leading to extreme damages, or injury, or death, and mold, asbestos, hazardous chemicals/substances found on site, etc.   

Setting up a LLC is appropriate when you have several properties onhand which make you become a very attractive target for lawyers and lawsuits, not just from your tenants but anytime you get into a litigious situation like car accident, personal injuries, etc.

And just to add insult to injury... the $350/month/door I mentioned earlier... our monthly cash flow across our entire portfolio is north of $675/unit/month after principle, interest, taxes, insurance and $100/unit/month maintenance reserve.  

It seems that you're already aware that CA doesn't recognize series LLCs so that having multiple LLCs while being a CA resident can be costly.Most likely the state where the property is located is where lawsuits would be brought if they are something for personal injury like a trip and fall or something of that nature because the “cause of action” arose in that state.