Should I look into an umbrella policy or LLC?

Some is fixed -- lender fees, appraisals and inspections (these are higher for multi-unit), title search, attorney fee -- and some is variable with your loan amount -- points, title insurance, county fees sometimes), so I like to break it out in that fashion.On a side note, purchase an extra umbrella liability policy to protect your property equity and personal assets from lawsuits. 1mm should cost $200-250/year.

What should I get to protect me or should I not bother with an LLC or the umbrella policy at 1million in liabilty becuase I do not have many assets yet?

This is where the LLC structure and healthy amounts of umbrella liability insurance come into play.It's a good point, however, that mortgaging your property is an excellent deterrent to plaintiff's lawyers (not to mention ramping your returns assuming you're buying at the right cap rates).

Consider an umbrella policy to increase your liability protection since you have a tenant, that will help also.Transfer taxes in and out of an LLC can be killer, depending on the location also.

One was anal, took out a ton of insurance (liability, loss of rent, umbrella, etc.) on his building and held it in an LLC.

Liability and/or Umbrella policy...

Possibly an umbrella policy for me, and ensure that they carry sufficient renters insurance.

You may also want to consider an umbrella liability policy for $1-2mm.

I have already spoke to my lender on the financed property and there is no problem doing this after the closing.We have a meeting with our insurance folks in the works as well to setup the homeowners insurance and discuss umbrella coverage.