You're still going to be named in the lawsuit no matter what agreement they have drawn up....

From what I understand, the house would have to STAY in my name, for the 2 years of experience, meaning the LLC is uninvolved with no protection for injuries/lawsuits.

If you fail to follow the rules, you may open your personal assets to a lawsuit.

No matter how many LLC's you have you can still be named in a law suit. 

Liability, lawsuits, lawyers...blah, blah, blah.Bicycles cause more injuries than trampolines.

We are not a litigious society so law suits is not a high risk here. - The court systems are way to slow and backed up, also making it VERY difficult to evict tenants - So screen very carefully. 

LLC's serve to separate your assets from each other, so if one is targeted in a lawsuit, your other assets are protected.

Other than the general concept of needing insurance, but you also want the insurance company's legal team to fight any lawsuits otherwise you'll go broke with legal fees protecting your LLC.Generally, the big issue is the more costly commercial loans that you will need to use since legal entities are not eligible for conforming residential loans. 

., house with a mother-in-law suite) or bigger (e.g., small apartment complex)? 

@Timothy SammonThe tenant getting insurance would protect them from the pool, but you'd end up named on any lawsuit if something happened.