Set up properly and maintained correctly, they should not allow for liability to pass through to yourself or your other entities, as long as funds are not commingled, seperate accounts are maintained, proper legal forms are filed, and loans are not personally guaranteed or cross collaterized. 

For example, any foreclosure of a home equity loan must be through judicial proceedings (court), and cannot proceed as a private foreclosure.All home equity loans are non-recourse loans, meaning that if the lender does not recover the full amount owed by the borrower through the foreclosure process, the borrower has no personal liability for the loan and cannot be sued for any remaining balance owed.Back to topConsiderations When Taking Out a Home Equity LoanHome equity loans can be a useful tool to allow a homeowner to obtain funds that are otherwise locked up in their home.

With your first rental, as you learn the only benefit is for liability, but when you are getting started, there are better and cheeper ways to mitigate liability risk.

How do I secure liability against my other assets.

A good portion the tenants weren't paying rent or the building had deferred maintainance that atleast in my mind was a huge liability.

However, a personal financial statement can give you a clear picture of your assets, liabilities, and net worth, which could make the loan process smoother and quicker.If you’re not in a rush, you might consider setting up a simple personal financial statement in a spreadsheet.

Start getting quotes on property insurance, general liability insurance, and an umbrella policy. 

Other than potential liability and loss of income, none I can think of.

So if you are still uncertain, could just make a lease with employer and give that employer rights to sublet to the person, thus your lease is with employer and there on hook to you, and they can deal with the person and all that liability. 

@V Reddy First, setting up an LLC to invest in real estate is generally to limit personal liability and for asset protection (select "magnifying glass icon" in top-right corner and search "LLC", you'll get a lot of feedback).