We have an insurance policy on the rental house (through State Farm), that includes a personal liability section, which is essentially equal to our current net worth.Given that a tenant could sue for more than this if an accident occurred, we are thinking about adding either LLC or an umbrella policy (or both) as extra protection.Any advice on which way to go, and if LLC, any recommendations for a law firm or company the Indianapolis area?

It never occurred to me that I’d have to make the drive to this building for 2 months.

The way you present things I can see this occurring eventually.  

If it isnt and damage occurs from guests, they may  not pay out.

These problems often occur in vacant homes due to lack of ventilation, climate control, and regular inspections.

Although I’ve been investing in real estate, both directly and indirectly for 45+ years, I still get a “queasy” feeling when an investment does not perform as expected.My “aha” moment occurs when we reach the point when, despite the investment problems, we’re able to still show a good/substantial profit at the end of our holding period.  

Meaningful home building hasn’t occurred in SoCal since the post war era.

You'll have tenants that don't pay, damages made, and potentially other disasterous situations occur on your properties. 

over runs do occur but 50% is really crazy.

Need a lender who understands that clean title will only occur on the day of closing.