If a neighbor tells a buyer or tenant, the resulting lawsuit could be ruinous.

But there have been many lawsuits over this issue including a big one involving Philadelphia.

There is a class action lawsuit against the City of Warren regarding their practices regarding rental property inspections.

My opinion is it's a lawsuit-mill.

I'd settle on 20%.You might want to get insurance or at least get the person to add you to the property coverage in case you were specifically named in a law suit related to renting the property.

Since you're licensed, your broker would be the one holding the bag is any lawsuits came out of it.

@Allen LopezGo ahead and talk to a lawyer to begin the lawsuit.

The only question you need to ask yourself is how much are you accepting to lose if you have a devastating lawsuit in one of your property.If you tell me you can afford to lose 10 properties, then by all mean put 10 properties per LLC if you want to save $150 a year.If you tell me you want to lose the minimum, then one LLC per property is a better choice as your liability will be limited to only that asset.As other mentioned before, the title holding LLC should be in the state where the property is located.

An anonymous LLC can be useful in deterring a lawsuit before it is started. 

Only people with the best of the best credit and income who care about their credit and have enough assets for the landlord to go after in a lawsuit will be allowed to have them.