Additionally, the scalability of co-living models allows for diversification across markets, mitigating risks and promising sustainable growth. 

Has it been mitigated?  

An LLC doesn't provide any advantages tax wise, it is just a liability mitigation tool (consult your attorney!).

It isn't always feasible to rewire everything and there are ways to mitigate the risks without having to replace every wire.

You're definitely going to need a tax accountant, and RE attorney to help you out on this one.If your properties are under a company structure, maybe adding the children as partners to the company with some sort of dilution of shares tactic that can mitigate your potential inheritance problem. 

Operational procedures- you still might get sued but you can mitigate the size. 

but not for 8 or 10% interest.. at that point your a capital partner and deserve either equity and quite a bit or a very high rate of return to mitigate the risks.

What do other landlords do to mitigate this risk?

If you can't afford it, don't buy it but the "Cashflow" strategy is like WWI trench warfare strategy in 2024.I have to disagree with your assessment of central Virginia - our properties cash flow very strongly and although they are less common than a few years ago I continue to see deals that will cash flow just fine in the counties surrounding Richmond.Cash flow is still the name of the game in risk mitigated real estate investing in 2024. 

IMO, if you can remove it your mitigate your risk if a tenant (or tenants guest) drowns in your pool.