@Lynn Currie To clarify, I have separate insurance policies on these assets (up to $300K), but I'm looking for a policy to cover our liability beyond these limits.I'm assuming one umbrella policy could be written, with the premium determined by the number/type of assets that might incur a liability claim.

If t's not formed correctly you lose many available limitations of liability.

The liability protection you mentioned would be wiped, and tax consequences could be severe.

not sure) $9,000Insurance quoted @ $14,000 w/ wind coverage or $8,000 w/out wind coverage (I would love to hear your thoughts about this and how you insure) This does include liability coverage with pool included.Maintenance and Repair @ 10% =$12,960 /  $23,040Pest control=$1,680  / SameReserves @ 7% =$9,072  /  $16,128Total Expenses = $56,052   /  $67,880NOI: $113,400- $56,052 = $57,348 /  $201,600- $67,880= $133,720Cap Rate= 8.7%  / (with the addition of the rehab of $300k to the ask price)= 13.9% capTo buy at a 12% cap I would have to pay $477,900 is what it looks like.My question is, ( well I have tons of questions but I will start with this) do you feel my projections are reasonable?

If you choose not to buy commercial liability/umbrella policy, it is up to you also, its either $2,000/year or your house, car, bank, but the choice is yours.

So you can be sure that the house is being treated as an asset and not as a liability, since you will only be relying on your active sources of income. - We want our assets to work for us! 

Price is definitely going to need to be lower unless this is a super desirable area.Gross Rent $414,000Vacancy Loss $33,120 (8%)Management $41,400 (10%)Interior Repairs/Maintenance $20,700 (5%)Property/Liability Insurance $12,000 (rough guess, used $300/door/year)Property taxes $40,000. 

I would also talk to your agent about a liability rider to Co er any accidents that may occur with the workers, just in case a GC or contractor isn't carrying the required insurance.

The problem with that is, you are insuring a business activity or liability, as defined by the IRS, on a personal lines policy.Hope that helps.Ivan

Do I need to set up my LLC in a different way to account for the liability of the investor & myself?