The LLC provides asset protection not taxes.  

This will streamline the process and protect you from bs down the road.

Besides being added to the title with my family member is there anything else I should do to protect myself?

PS - The same annuity has a line saying: Protected Living Benefit Base Amount, which is even higher (say 550,000 to continue from the example).

We work with out-of-state/foreign investors consistently and the key is communication and being the type of company that is technologically forward-thinking (i.e. the ease of sharing photo/video updates and making selections for your property).Your first protection is making sure you can run the numbers for the right deal - looks like you have a good head for the numbers you need to hit, so you're on the right track already!

Just balancing risk of potential loss with cost of protecting against that loss.I've had insurance of one type or another for over 40 years and can count all claims on vehicles and houses on my thumbs.Most of our properties aren't all that expensive and a complete loss (unlikely) wouldn't bankrupt us. 

I love what the LLC brings to the table in terms of protection, however I hear banks dont loan to LLC's  for residential projects.

Obviously, put this all in writing to protect all parties. 

But should something bad happen, you will be happy that you have some level of protection by having it permitted.Downsides of pulling permits: you can open yourself up to more work than you thought. 

This will protect both of you in the event something happens with the sewer line; who is responsible for the repairs and cost.