Unfortunately with the US lawsuit happy I'm at risk either way.  

KPs can be hit with civil and legal liability in the event of lawsuits filed by LPs, other members of GP etc.

If there is a fire and there is an injury there will be a lawsuit. 

The fact that FPE panels are all over 40 years old at this point (because the company went out of business around 1980 instead of facing multiple lawsuits due to people dying from house fires) alone is a reason to replace them.

Here are some things to consider:Advantages of Purchasing Investment Properties under Your Name:Simpler and less expensive to set up and maintain than an LLCMay be easier to obtain financing since lenders may prefer lending to individuals rather than an LLCMore control over the property and its managementDisadvantages of Purchasing Investment Properties under Your Name:Personal assets are at risk in the event of a lawsuit or other legal action against the propertyMay not provide the same level of liability protection as an LLCNo separation between personal and business assets, which can make accounting and taxes more complicatedAdvantages of Purchasing Investment Properties under an LLC:Offers liability protection for personal assets in the event of a lawsuit or other legal action against the propertyProvides a separation between personal and business assets, which can make accounting and taxes more straightforwardCan make it easier to manage multiple properties and limit liability across themDisadvantages of Purchasing Investment Properties under an LLC:More complex and expensive to set up and maintain than purchasing under your nameMay require a higher down payment or interest rate from lendersLess control over the property, as decisions must be made in accordance with the LLC's operating agreement.You personal have to weigh the pros and cons.

If you fail to follow the rules, you may open your personal assets to a lawsuit.

In theory, it's protection against lawsuits that likely will never happen, especially with little houses.

Divorce, Bankruptcy, Law Suits, Liens, Federal Taxes, Judgments, Probate, you name it.

Well, looks like this has been covered; except a seller always has recourse, it's a law suit for actual and/or consequential damages.

If there is a listing agent, ask if project is Fannie Mae Warrantable, ask for # of investor owned vs owner occupied, and if any lawsuits against the association.