It would just be so much easier to let B report all income/expenses than to have A & B split everything but A also pay B rent!

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is expected to be higher, you may consider an umbrella insurance policy.

I could use the HELOC to finance my down payment and rehab and then when I refinance my BRRRR, I could pay off the HELOC and close the loan. 

You may still want to consider opening up a separate bank account because there may still be some expenses that you pay for directly outside of what is paid by the property management company - I.E.

I'm 32 years old, with a good paying w-2 with an always abundance of overtime availability.

The well serves about 74 properties (some lots are vacant)  of which currently 40 are paying and the owner estimates as many as 18 may be stealing water.

If we kept it in our name for a year, does anyone know if we will have to pay transfer taxes when we transfer it to the LLC in both our names?

The ones that sell the fastest are the ones you want to pay attention to.

I mention this for visibility into the amount borrowed vs the individual's personal assets.Current language in contract: The Guarantors, known as John Smith, of Street Address, Coral Springs, FL 33071 agree to be liable and pay the Borrowed Amount, including principal and interest, in the event of the Debtor’s default.

With a PM in place you will have to pay them their cut and to go back to the second part if you end up buying in a lower class area you will be getting a lot of turn around it’s just the way it is.