It seems to me that the big advantage is liability avoidance, but can't you just get an umbrella liability policy instead (which you might need anyways even with an LLC) and skip the LLC fees?  

Talk to your lawyer about how to set up your LLC and ask whether or not it will be worth it to protect your assets, or if something like a robust umbrella insurance policy will suffice. 2) Potential tax benefits.

The owner of the operating LLC is the umbrella LLC.Another way to look at it:  Mo Smith Investments is your umbrella LLC. 

Hi, I'm debating whether I should purchase umbrella insurance or setup an llc for my rental.

Also, if you already have an umbrella policy, now the one policy will cover the both properties --- a plus. 

If you buy in your own name you can get better terms but you have more risk so you need an umbrella policy.

If you're going the umbrella insurance route, make sure it will cover you for several things including just the routine slip and fall (like mold or earthquake).

I say have a good umbrella policy, figure out your risk tolerance, understand the cost and hassle-factor of maintaining multiple LLCs (different accounts, different books, different tax filings, etc.) and go from there.

It seems like there are strong opinions about an LLC, multiple LLCs, series LLCs, Something in Delaware, offshore accounts, umbrella polices but I have yet to see any actual data on the topic.  

I buy my properties in LLC name and I also have an umbrella policy for added protection.