There's a myriad of options under the umbrella of Real Estate Investing. 

I will also be looking into some umbrella insurance plans as well to supplement. 

Please remember LLC would not prevent lawsuits but only limits the amount of damage from a lawsuit to any property(s) covered in the LLC and not affect your other investments and home.In some cases, an LLC may deter greedy lawyers/plaintiffs in going though with a lawsuit if not much equity is in the home and only a limited award can be had suing the LLC.However, for beginning real estate investors with less than 5-10 properties with very little equity, good insurance (both property insurance) and personal insurance (umbrella) is a better way to go.Why?  

We will do more due diligence and look at finance options as we move forward.Specs:Property: 2 condos at $110,000 in Harris County TexasRent for 1560Taxes 2640 a year530 a month HOA/Condo fees (includes outdoor maintenance/insurance)100 a month maintenance feesKnown Financing Options:Cash for 20% of PP and 6.5% interest on loan for balancePlan for Property:Rent for a year or less then allow for rent to own and hold the note.

do you have umbrella policy over that for liability? 

You can easily add $1m or more in umbrella insurance to the homeowners insurance policy to cover the worst case scenarios, at low cost.From your question it looks like you haven't spent much time researching this topic yet on BP.  

You are looking for a "Waiver of Subrogation" naming you as insured on his ACORD certificate (this would reflect his WC, GL, Umbrella, and etc), if it is real, then you should be off the lawsuit, if he made it up, then he is guilty of perjury.

In addition to having some units insured by them they also are the provider of our umbrella policy.  

Just take out a good umbrella insurance policy to protect yourself (~$2MM or more policy usually runs less that $100/month).

If you went with that structure, you'd be paying fees the same as you would for a single LLC, but you can set up as many series you want below that umbrella, which can all be treated individually, so long as they follow proper procedures and have separate bank accounts.