For taxation, you can choose to have the LLC considered a disregarded entity (like a transparent layer, everything flows to your tax return) or have it taxed as an S-corp (but for rentals is not good to own them in S-corp or C-corp).Insurance is needed, if not downright required, for your properties.

The main result of this decision for small time landlords is just going to be an additional layer of completely ambiguous government bureaucracy and taxpayer supported red tape   to be circumvented.  

I don't have the full list of what needs to be done right in front of me but I can give you the short rundown: (house is about 900 sq. ft.)Roof needs to be torn off (3 layers on already) and a new one laid onSiding needs replaced (this neighborhood has siding done in a way that I haven't seen before; on a lot of houses one side is done in wood planks about a foot wide and the other three are vinyl siding).Ceiling had some water damage in two rooms and there are some cracks that need to be fixed.The flooring has to go entirely (carpet and kitchen tile).Kitchen cabinets are in pretty sorry shape, planning on replacing them.New kitchen appliances (none in the house)Landscaping work, possibly getting rid of a cluster of small trees that are blocking off one corner of the house with no benefitWhen I get home I can provide the full list with what we were estimating for each item.

Since most hard money loans are short term and interest only, it is vital to have a sound plan for what you intend to due when the full loan balance comes due.

It adds a layer in between you and the seller and frankly takes some of the liability off.

Gathering information is a vital first step, but taking action is the most important strep in my opinion. 

And it is particle board, so a good layer over a crap layer is like bbq sauce on a turd. 

Say for instance the personal financial statement reflected a net worth of 8 million dollars but when digging into the actual assets on the financial statement I find that the majority of those assets are jointly owned with spouse or layered in partnerships. 

You see creditors and collections agencies will periodically do a soft-pull (without notifying you) to grab additional information from your credit report without you knowing at all.To remove your information from creditors, collection agencies, and insurance companies go here and complete the process of opting out:  https://www.optoutprescreen.com/Secondly, you want to make sure that whatever payment you send to them doesn't include your signature because they can use that as an extra layer of verification.  

Also, I am planning to purchase this property in an LLC, which ads another layer of difficulty to the refi.