I hadn't thought about "finances and wealth" much before, but this summer during break, I picked up a copy of Rich Dad, Poor Dad, and it made me realize that I have always purchased things that were liabilities. 

You can Quit Claim it over, but you have a chance of triggering your due on sale clause.Just get an Umbrella insurance policy to cover extra liability coverage and leave it in your personal names...  

If you think you are at risk, max out your liability policy, buy an umbrella policy, and if you still think you may be at risk, form an LLC (don't name it after yourself) and transfer ownership of the property into the LLC.

Is it necessary to create an LLC for a rental property to help limit personal liability?

LLC is superior for RE because you separate yourself from the property: i.e. no personal liability...but an S-Corp allows access to your personal assets...bad idea...if you like the structure of an S-Corp, you can have your LLC taxed as an S-Corp...they are pretty diverse...typically more affordable as well.

You'll need to set up the following new accounts:Asset Account - Escrow at new company (I set my escrow accounts up as bank accounts)Liability - New Mortgage Payable.Let's assume the following balances before the Refi:Escrow account $500Mortgage Payable - $100,000.Long Term Asset - Property - $110,000Let's assume the following balances after the Refi:New Mortgage balance - $350New Mortgage Payable - $130,000Cash out $28,000Closing Costs and Escrow - $2000As you go through the Settlement Statement, you'll pull all of these items out and put them in the following journal entry:Mortgage Payable -      debit    $100,000New Escrow Account - debit   $        350.00 (You'll find this under the settlement statement, usually labeled as so many months of prepayment of insurance and property taxes)New mortgage Payable - credit -                       $130,000Cash/Checking Account   debit   $28,000Loan Amortization Costs -       debit           750.00           This should be only a fee paid as a percentage of the loan.  

@Alex Short Putting security deposits in a separate account is done because those are technically financial liabilities, in that you're responsible for holding onto those funds and not touching them until they're either returned or used, be that partially or fully.

Definitely recommended if you want to limit liability.2.Best way is to make it your primary residence.

If you can't assign to a real buyer within the terms of the purchase agreement you need to get out before you incur liabilities.

If anything, understanding the retail side of the industry adds to your credibility and I haven't found it to be a liability at all.