I think his point was protecting personal assets.

@Sedgrid Lewis  Unless your state has laws to the contrary, sex offenders are not a protected class. 

I know the DP (dwelling protection) insurance policies are standard landlord insurance but my agent tells me I can also get a Businessowner policy to cover the property (mostly concerned with fire, wind, standard perils). 

Things are pretty intense here in Jacksonville Florida with investors flooding the market...theft is rampant by other investors...it is regionial to a certain extent.. but I agree with you.. when I first went into Detroit as a fix and flip lender back in 2002.The contractor that my Turn key marketing guy was using was really up to speed with how to protect these homes and he said the same thing you did.. its the contractors coming back at night to steal what they put in during the day.. 

Generally, you cannot help taxes on rental properties by structuring.So you should evaluate it from two other angles:- asset protection which is an attorney's questions- operations, for which is overly complicatedAnd if you "don't have the best accountant" - maybe you should upgrade.

The members of this NM LLC are not able to be looked up due to the privacy protection in NM.I am a manager for the AZ LLC, how do I specify that in the RPA?

This should protect you.

Other rules can be found at the link below:https://www.nolo.com/legal-encyclopedia/new-federal-rules-protecting-homeowners-with-mortgages.html

What protects me of having the investor go around me?

It is the #1 destination for real estate, bar none.As agents we collectively gave them that power, in the early days if the MLS was smart they would of been the zillow of today. but with all the infighting, gross duplication of efforts, protected profits and sheer shortsightedness on the MLS's part if they made a national MLS it would of been a different story and agents would have continued the monopoly [good or bad depending on your stance].