With an LLC, if set up correctly, they can only go after assets in your LLC.Cons of LLC:We have to maintain strict separation of personal finances/banking from the LLC finances or else the llc veil can be pierced .You cannot get a loan on an LLC so first you have to buy Rental Properties on your name and then change title to the LLC.

Will depend on several factors like the type of property, type of tenants, your risk tolerance, other assets you own, your estate planning, laws where the property is located, etc.Any lawsuits would be limited to the assets of the LLC and not your personal assets (assuming you run the LLC appropriately and the corporate veil is not pierced).

The lack of affordable housing in the King County/Seattle area is pushing the population south and driving market prices throughout Thurston and Pierce County.

@Simon Obas if you have an LLC already you need to do certain things so that an attorney cannot pierce your corporate veil. 

However, if your tenant falls down and busts their hip, they can only sue the property owner which is the LLC and not you (so long as you are not proven to be negligent or that they were not successful in piercing the corporate veil).

I spoke to an attorney who had listed very specific things so the corporate  veil can't be pierced such as new bank account etc. 

Pierce, King, Thurston, ...? 

Don't pierce the corporate Veil: This can occur if the entity either is poorly capitalized.Inadequate Initial funding of the entityor fails to maintain a separate identity from its owners ( using the business bank account for business purchases, maintaining separate books) Conversion of entities Assets for Personal Benefit:Another factor that poses a risk of piercing the corporate veil is the draining of entities assets (such as payments of large salaries to shareholder-employees) that leaves the entity with inadequate resources to pay its debts.Also, you should get a good Insurance.

There is a legal concept called "piercing the corporate veil" (applies to LLCs also), and commingling funds is one of the surest ways to lose your liability protection.You should have cash reserves when you create the LLC (again because the "piercing the corporate veil" concept), but that does not mean enough money to cover all unforeseeables. 

What I like about her is that she takes the time to make sure what you understand what it is that you are setting up so that you don't accidentally pierce your our corporate veil.