I have looked for examples of landlords that were protected by their LLC and always come up empty handed.

As for the legalities of setting up an LLC to protect you and your partners, I would consult with an attorney for best judgement. 

I am here to create a business strategy that protects personal and business investments and mitigates risk,  procure a coach or mentor, and set up tax strategies to create long-term wealth for myself and my family. 

Last year we helped eight buyers acquire exceptional coastal STR's in; Brookings, Gold Beach, Bandon, Manzanita, Arch Cape and Yachats, with two in 2025 under contract in Seaside and Rockaway Beach.

An LLC is useful for two things: anonymity and legal protection.

Requiring occupant to have renters insurance is another possibility for extra protection.

Forming an LLC for your rental property can offer liability protection, but no real tax benefit.

I will preface this with the fact that I have a legal background, specifically with estate planning and asset protection.

Apparently, local jurisdictions here are saying they want more affordable housing, but in the same sentence will also say that there will be more regulations, more environmental protections, and more hoops to jump through to develop starter homes. 

I think you certainly need 1 LLC in each state for legal liability protection. e.g., you may loose legal liability protection in Illinois if you are investing in Illinois with an LLC located in Michigan and you'll be paying taxes to the two states in most cases.