The closing attorney or Title company may be the determiner for an answer and usually at this point in the process as an agent I'd defer to them.As an investor, I think I'd want all this squared away before closing so maybe check with the attorney/closing company.

Quote from @Scott Allen: @Sharad Bagri Speak with the title company that helped you close the deal and ask if they can have their real estate attorney help you do this.

I've talked to a few tax accountants and attorneys about it and some are open-minded, while others are convinced that they are a complete sham (though they actually know very little about them).I'm curious if anyone on here has actually seriously considered using one or actually used one? 

I am NOT an attorney so please consult one before implementing the verbage below.  

Seems like an overkill and all you need is an insurance policy as any good attorneys first question will be "how much did the LLC who is to be separate from you pay for the property" - when the answer is zero and it was gifted. the next question will be do you gift properties to others as well?

I would HIGHLY recommend discussing w/ a RE attorney and getting familiar with the tenant/landlord laws in SF. 

However, you should always do some market research, talk to an attorney, and be knowledgeable about the law in NYC.

You really want to have your contract approved by an attorney even though California doesn't use attorneys for transactions.

Find an attorney who you trust and can help you strategize.

This may not be entirely a CPA question, you will need to consult with an attorney as well.