With umbrella insurance, one LLC would do the job better than an LLC in that situation.

And have adequate Umbrella Insurance. 

It seems like an umbrella term for all sorts of loans.Revolving credit: If revolving credit is a line of credit that stays open (i.e. once I pay off the balance I can instantly use the money up to the credit limit again), how would this be useful?

Get a good umbrella policy, get great insurance, find honorable tenants who did not sue in the past, keep logs of property maintenance, fix health and safety code violations immediately, and be a good business. 

I believe the name of the company that does this is Equity Assurance LLC per Pace Morby (the subto guy)Along with due-on-sale insurance, you should have a decent umbrella policy with high coverage to protect yourself since the lender WILL foreclose on the seller if you can't pay them backKeep in mind that if you don't pay the bank back within 30 days or so (whether that be sell/refi), they will tarnish seller's credit and then the seller can sue youP.S To protect yourself and the seller even more, have solid private capital partners that can jump in to pay the lender off in addition to the aforementioned insurance policies

Make sure you follow the Operating Agreement Precisely.Otherwise, simply get umbrella coverage and be better off and relax. 

Make sure you have an Operating Agreementc) Make sure you maintain everything precisely to the Operating Agreementc) Make sure your attorney will defend your LLC in courtd) Make sure you thoroughly understand what you are doing and what it protects and what it doesn't protect e) Make sure you understand how to direct your attorney in a lawsuit in the event you need all of that faulty LLC armorf) You AND your LLC will be named in the lawsuit to see if you followed the above.Why not get an umbrella insurance policy and get the same protection for far less hassle.

You should also get umbrella insurance.   

If it were move I would move to evict the other tenant immediately and never ever would I allow a pit bull in any of my rentals.I love dogs and I know most pit bulls are not harmful animals, but this is an instance where you get sued any umbrella insurance policy will not cover you and you would have zero protection if it’s in a LLC and you would be sued personally as owner and property manager

And actually upto $100,000 'ish in equity can be covered much more simply with Umbrella Coverage insurance.