Another option is getting a umbrella insurance policy instead of a LLC if you are looking to transfer to a LLC for personal liability reasons.

Something along the lines of an umbrella policy?

Put a mortgage or two on each property to pull out equity and get a $5 million personal umbrella policy.  

If there is really gross negligence on your part in any activity, sure someone will sue you but like @Natalie Kolodij mentions, have a solid umbrella insurance policy and you will be fine. 

That way you know you are not getting a cancelled or expired policy.In our area State Farm provides general liability or umbrella liability protection for rehab and rentals but if you are doing major rehab, you may need a builder's risk policy, which is a little more expensive and I do not believe they provide.

As I grow I need #1 a umbrella name for the company and also wondering if I need to manage under my own account or if allowing them to have individual accounts is better.

Can you get Mortgage under the LLC umbrella?

Would an LLC do that, or do we need to get some type of "umbrella policy?"

My understanding is that Blake would not owe any taxes on any of this money since all of his investing is done within the umbrella of his self-directed IRA.

That is a low probability event with a high impact (ie; it will probably not happen, but if it does, you are screwed).Another great way of protecting yourself from this low probability event, is to get an umbrella policy.