I went with conventional financing and purchased an umbrella insurance policy. 

The kicker is that I have an umbrella policy through them so I'm trying to weigh it all out.  

A one time project or joint venture is advisable.Concerning an LLC, start on-line to give yourself a guideline and see a local attorney after you've considered how you want to structure it.Liability consideration can be covered in an umbrella liability policy for a quick flip.Most handymen and contractors are usually specialized and not able to efficiently complete a project cradle to grave.  

Umbrella insurance is great, but in cases of an enormous claim, would not protect our personal assets. 

Do you have an umbrella policy for problems that may come up?  

(I will only invest in "X" situation that make "X" returns.)2> Have a policy for dealing with projects that are "interesting" but just miss your risk parameters.3> Have strategies for reducing risk: home insurance, umbrella policies, flood insurance, work that's always done to code, LLC or some other structure to protect your personal assets, replacing items before they fail, budget rehab +10% for overages, et cetera.At the end, then there is the sort of random risk that you can't account for.

Honestly this LLC vs Umbrella Insurance is such a confusing topic.

I have a $7,000,000  umbrella that costs less per year than Llc maintenance costs.

@Amy Hu you need to ask this question of your Persoanl Umbrella company. 

I also suggest having a large umbrella insurance policy. 5M umbrella not much of an annual premium.