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?

I've become a firm believer that it's not just an ability to pay but how you pay.

To thrive in real estate investing, you must maintain a firm grip on your finances.

That's great to hear that you're graduating and you want to get into multifamily.I would start off in a commercial real estate firm, learn the systems, the sales/buying process, how to analyze deals etc...

Perhaps my current firm at $6,000 is a little more suited for people with a bigger portfolio.We have 4 rentals. 

Has anyone used e1031xchange owned by the law firm of Jerry M.

He's an investor himself and recently left his role as partner at the largest firm in the area to start his own company.

But if you have a cash buyer who is specifically looking for income property, and even more specifically a vacation rental property,  I firmly believe that there is a value add from having a working STR there.

Be firm and follow the law, don't let her fall further behind. 

To thrive in real estate investing, you must maintain a firm grip on your finances.