It's all about risk in the event of a lawsuit, which can also usually be covered by insurance.- If you decide to have an LLC for each property, creating a Management LLC that all the other LLCs "hire" to run their books, will allow you to only require a bank accont for the Management LLC.2) You may not be able to do a Trust.

I understand there are some protections that go along with it with all the law suits going around but hardly doubt they would go after an office with two agents in it.

This could help protect against any future lawsuits. 

Also, umbrella is for liability only (lawsuit protection) and not property protection.

Did you keep some coverage in case of major lawsuits? 

If you fail to follow the rules, you may open your personal assets to a lawsuit.

We have several rentals through pennymac and are interested in doing this for lawsuit protection.  

You mentioned, considering starting a lawsuit. 

I have no desire to be part of any lawsuit or liquidation event.

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.