Hi Alan and welcome to BP.I highly recommend reading "How to Use Limited Liability Companies & Limited Partnerships" if you want to learn about all the ins and outs of LLC's.

What liabilities exist for having that information (in the case that it was stolen?)

We carry umbrella liability on the LLC and each property is added to the policy as they are purchased.Based on my prior business life, I understand very well that one should have liability insurance of at least the value of the assets being protected.However, past a certain size, say 10 properties, it seems prudent to create a second LLC, third LLC, etc, in order to keep liability spread out a little and to in effect, increase liability coverage.

I could potentially get workers to tear stuff out at $8/hr vs $30/hr.However, I've been wondering whether a general liability insurance policy would cover an injury related to one of these workers on the property.

Just the thought brings nightmares of endless liabilities.

Meet the people who are going to be looking out for you in person.To say it another way, if a property has the blessing of a RE agent, who will make money if you buy PM, who will make money if you buyand I've familiarized myself with the demographics of the area, Demographics are just one piece of datacomplete an inspection,By an inspector who has zero liability for anything they say etc., what is the residual risk that poses a serious threat?

The roofer did not have workers comp coverage (only liability coverage), so the sub sued and got a judgment against the roofer.

Your contractor will also have a GL policy that will take some of the liability during rehab but you should also have an umbrella in place to give you a more sure level of protection. 

Again, by the time you pass, this multifamily will be a C class liability waiting for the wrong property manager to destroy it.

However, you can not exit without experiencing a tax liability.