My understanding of best practice is that (1) you want to have your LLC in the state where the property is located to avoid the foreign LLC issues and (2) you want to set a maximum value of the properties in any one of those LLC (3) Finally, by holding the child LLCs inside a holding or series LLC you can shield the assets so only the LLC the property involved in the lawsuit is at risk. 

While you can be named in a lawsuit anytime, piercing an LLC requires that either (1) the LLC was/is no longer in good standing with the state or (2) you’ve done something liable PERSONALLY, such as committed fraud or (3) you’re in a profession for which the state government does not allow LLC protection for negligent acts and you are being sued for a negligent act, such as medical doctors, etc.For more usual lawsuits like loan default (assuming no personal guarantee and absence fraud), injury at property, eviction, etc. a LLC in good standing will not be pierced.   

If you can ensure work is being done in a manner that is not going to spark a lawsuit, great.

I've also heard that having paid off houses makes you an attractive target for frivolous lawsuits. 

Three weeks later you get served a lawsuit for Wrongful Foreclosure.

How are they "asking" for $200K - via your insurance company or a lawsuit?

Hannum, still under the impression that HIS giant was authentic, was referring to the thousands of "fools" that paid money to see Barnum's fake and not his authentic one.Hannum brought a lawsuit against Barnum for calling his giant a fake.

The way they do these deals there is a high probability of a lawsuit later.

If it is then it is a basis for a class action lawsuit.

If you did break it, you may end up in a lawsuit for breaking it.I would look at it for what it is.