IF it is you as the person managing, asset protection would be easily pierced as if something is wrong, they typically sue the company AND the person who was negligent, which in this case would be you.You would be far better off hiring a 3rd party IMHO

But, from my point of view, until you have a lawsuit, you don't necessarily know if you have pierced your corporate veil. 

@Marcelo BellinasoThe truth is, every market in the tri-counties (King,Pierce,Sno) has a shortage in rental properties.

What does state law say about piercing the corporate veil or participation liability?

If you run your properties well and have good insurance, that may not matter, but I would be more worried about piercing the corporate veil than red flags to the IRS.

A lot of landlords are advised to put their properties in the name of an LLC for asset protection.While this is basically true, the reality isn’t what most landlords think.If a legal issue occurs with your property resulting in a lawsuit, there’s a decent chance the plaintiff’s attorney will be successful in “piercing the corporate veil” of your LLC if you were sloppy and being able to sue you directly.

---Another question i have is if you're allowed to take the money from a mortgage acquired from the equity in your LLC property and use it personally or whether you have to put it in the llc account (assuming house is paid for,loan is on value of property i or rather three members contributed to llc)Would this be considered a return of capital which i can use personally or are there any problems  I may create by doing this such as tax consequences or piercing the corporate veil?

You want to avoid co-mingling funds and piercing the corporate veil. 2.Is the contribution in the form of Cash or could it be the property itself?

@Luke Pierce -1.

My layman's opinion is it adds to piercing your corporate veil via alter-ego.