I'd have to see the numbers and how much money goes into your pocket after all expenses and risks to guess if it's a good way to go.

It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.Make sure your property manager is a licensed real estate brokerage.Understand you can not eliminate all risk, only mitigate it.

Otherwise, you run the risk of the LLC protections not applicable because of mixing the two together exactly as you said.My attorney did suggest one umbrella LLC that would include the other two, but we decided it isn't worth it at this juncture.

The option to quit a job with a middling base salary, for example, and take a more commission based sales job with a lower base salary might become an opportunity instead of a risk.

Between having minimal liability risk in my own personal activities, renting to only the very best tenants, having excellent independent tenant screening, long time property management relationships, adequate per property insurance coverage and tack on umbrella coverage as/if necessary, I am more than adequately covered.

@Joel Owens  What are my risk of seller financing other than over paying? 

the biggest risk mitigator of all is INFORMATION.

Additionally you may be required to pay the tenant interest on the money as you would with a deposit or LMR.The reason you are being offered a bribe is most likely because they are a extremely high risk tennat.

We typically have a GL that covers the company and our agent does a builders risk policy on each project.

I have one in Oregon that is just under 10 million and typical hard money rates are being quoted.. however frankly if you still cant make nice profit paying for HML or private money then the deal is probably to tight. if your talking 10 points and 20% then ya that would  be a little bit high.but 2 to 5 and 10 to 14 is in the all park.. for a HIGH risk horizontal loan.I just did one personally ( i was the lender) in Orlando and we were up there on the top end of what i am talking bout 30% apr  but the developer snag a great deal and will still make a few million on it while paying me 100k for a 700k loan he used for 7 months.. that seemed fair all around..