I like umbrella because there is no worry of being pierced for inadequate separation of finances, if sued you have a heavy weight in your corner who has all the consequences of a defeat, and because usually it is reasonably priced (mine today is not so reasonably priced but I believe it is mostly related to the risks of CA).I do understand that the probability of needing the umbrella policy is low.  

Quote from @Hector Romero: Hello all, I am new to the community as well as being the lead in real estate investments.My sister and I currently hold 3 properties next to each other in Riverside County, California (we'd like to get them in an LLC but we're unsure how that may affect financing them).

Hello Bigger Pockets Community,My sister is considering renting her 3bed/2bath home in Sacramento CA and relocating to WA state.

If the client is in CA the community property state laws may help here (not entirely sure) depending on when the property was acquired but it would be a great question for an attorney as Jason mentioned.If they were married and went through a divorce it would be worth looking into how the divorce paperwork stated how that property would be handled.

You will need to look at CA building code.

California, New York, Texas, Florida, Illinois and followed by Tennessee.  

Without the high leverage you reduce the top source of return in CA RE which is achieve via the appreciation on a high leverage property.  

Hey Aishan, I personally own 12-doors in Detroit and I live in California.

For example in Southern California many apartments do not come with refrigerators.

I was the HML who put the CA clients into title for 1k per house.. then countrywide or wells would refi them in about 90 to 120 days generally they could cover their lending costs and be positive cash flow 50 to 150 a month..