I would have an attorney draft it/review it to have adequate legal protection.

Consider being the bank and doing some HML.You can get 8-12% rather easily plus points on the loan.It's also collateralized by the property so you're protected.

If there is a liability claim (tenant falls and breaks a leg) the tenant liability insurance will protect you, as well.

There is some protection with an LLC but I would consider getting to know a local lawyer that can give you some guidance on whether it’s worth putting it in an LLC vs having an umbrella insurance policy.

Hi guys, do I understand correctly that in order to protect myself better I should:1) use a special warranty deed to transfer a property from my personal name into an LLC?

Legally I want the standard asset protection.

Just wanted to add that investment property refi does not have the same protections as owner-occupant -- we found out in 2012 at a refi closing. 

I can see the courts so backed up, that your tenants could live the year or more without payment. the kicker, is that to protect your investment, you will STILL need to do maintenance.I wonder, if the law that allows a tenant to live for free, would charge me for failure to keep certain provisions like heat, air, cable, water, sewer and more in place when my funds say no!

For example, electrical, plumbing, building, fire protection.

Get a good lease so you can protect your interests, put exterior locks on the bedroom doors so the tenants can lock their things and feel safe.