There are no insurance pools for small investors, you may mean an umbrella policy putting several properties under one policy, that can be done but probably tough for 2 or 3 SFDs.

Current rents 1100/600Principal/Interest: $988/monthInsurance:$100 month (high est. with umbrella)Utilities: $100/month high est.

Also, consider, do you have any "umbrella"/liability coverage for any things not specifically covered by regular insurance?

From there, piercing the veil of your LLC is pretty straight forward.Make sure you have a good PERSONAL umbrella policy for real liability protection.

This piece of land is in a gated community area where there's outdoor activities, etc.

We also have room for boat parking , as well as a hot tub and cute outdoor area so hoping that helps. 

And do not go into the "need to form LLC" until you have used up the conventional limit; just carry a big insurance policy and umbrella coverage too.

For someone who is just starting wouldn't a personal umbrella policy accomplish the same thing?

Either that, or that really are just regurgitating someone else’s stuff.Let your income lead your expenses, not the other way around – I have to confess, I heard this from a free real estate course, not personal advice.However, I have found this to be very valuable.It’s amazing how quickly you can spend a lot of money and/or get into debt because we think “we have to spend money to make money”.We get in a hurry (remember #1) and think we’ll make all the money back in just a short time period.The gurus are great at convincing us that their course will pay for itself and we believe every bit of it.Instead of going into debt for education, pay with cash and from your previous income, not your future possible income.Remember, “results are not typical”.Don’t worry about incorporating in some other state – This actually came from an attorney friend who said if I felt I needed a Corporation or LLC to use Nolo Press and to do it myself.Contrary to what most of the gurus say, you can look up the parties in Corporation and LLC in Nevada and other states.In addition, most states will require you to register with them if you do any kind of business in their state.So, if you’re going to form an entity, just do it in the state you are going to do business in.Don’t form an entity until you have done several deals – This seems to be one of the first things newbies want to do – and I was one of them.What the guru’s don’t tell you is that you’ll probably have to pay someone to do your taxes for your entity which will add extra costs.They also fail to tell you how difficult it is to work with banks as an entity until you have several years of tax records to prove you’re successful at the business.If you haven’t done any equity or assets, use liability insurance and a personal umbrella policy.It will be much more effective and cheaper in the short run.After you have done several deals and have assets you want to protect, then you can form your entity.

To combat our legal risk, we put a high cap on the liability insurance of each property, and put an umbrella policy in place.