Not only will filing as an LLC award investors with great tax benefits and asset protection, but each subsequent LLC will provide another layer of protection.

They will put 10% to protect the hard money lender, but the note will only be written with 3.5% down and the other 6.5% held in escrow to protect the hard money lender.

Should this building be Parcelled to protect myself and my investment?

This 2x LLC structure with some umbrella insurance is quite common and gives most people all the legal protection you would need as a real estate investor.

While you are correct, the reality is in Texas a landlord has very little chance of collecting due to our Homestead protections. 

If you don't have significant other assets to protect, it's just extra cost and work.

It’s important to note that this timeline is separate from the eviction timeline of June 12.Regarding tenant requests for maintenance, we are addressing emergency, health & safety issues to avoid causing you potential liability issues and protect your asset.

(maintain asset protection)

This is how they suggested we lay everything out so we will be protected in the event of legal action (My W2 job requires almost constant credit monitoring and can not have any legal issues---lets just say a government job).Also when looking at how everything is set up, take into consideration that everything listed above has been created since 2017 with the exception of the tax office and her being a cosmetologist.

The 20k is all that’s available, and I believe like you said I would need to build more either way to really protect myself.