That will have given your Optionee their full contract term and will free you up from a lot of liability with them.  

The rental is in my name but I am looking to transfer it to an LLC for liability protection. 

Cheap with good liability coverage $1 M.If you are maximizing cash flow, and like the minimal "self insured" model of barebones insurance, then Affinity is a good bet.I saved around $400/year by switching  to Affinity last year for my texas property (sounds like a Geico commercial)

This way a normally cash flowing property doesn't become a liability once property management is required.

Sovereign debt levels are crazy high and only going higher due to unfunded liabilities caused by the aging of the baby boomers.Debt is more in demand than any time before.

If this is the case, does it mean that I , as the seller, will have a bigger liabilities?

BTW: Hubby, who held my bro's POA, said the mobile homes have liability only for $300k. 

Now I have two rental properties in the Memphis area.I was not able to travel to and personally walk around and inspect this purchase but I do anticipate being able to do a drive by in a few months and with everything going to plan also inspect my third investment property.Going with turnkey investing at this point has allowed me to put some time into learning more about taxes, legal, and probate avoidance.What I am getting out of the research... having not yet spoken any professionals except CPAs... is that: California is a crappy place to try and start a business.Using legal entities is a personal choice but if you are going to do it there are tax efficient ways.While one LLC per property may be an ideal scenario from a liability protection consideration, it may not be cost effective and grouping/clustering houses in some way (such as by location or by value) may both mitigate your risk and provide some financial relief ($800 per LLC in California).I have more interviews to do but I am leaning towards:1.

How about any Liabilities from this after I sell?

The umbrella policy covers your liability, not tied to only one property.