What is your tolerance for tenants being nearby as @Joel Owens alluded to?

Whether you do it with LLC's or umbrella insurance is a discussion you should have with an attorney.Going over your profile with an attorney with details on what your net worth is, what your risk tolerance is and how risky your assets would allow you to understand whether an LLC is worth it.

@Adrian Kar It really depends on your investment goals, preferences, asset class, price point, risk tolerance, acquisition strategy, and long-term plan.

Thank you,RamiThere are so many different intricacies of D.C. right now from tenant laws to which neighborhood’s are getting worse vs stable, I’d probably look for a rental In D.C. in the Riggs park area, I’d also strongly consider the D.C. suburbs if you want something more stable, if you want more risk/reward the formerly gentrifing areas of the city, like petworth, Columbia heights, Brentwood & the H st corridor have some potential upside if you believe in the city but also substantial downside, so I’d definitely decide what your goals/risk tolerance is. 

You need to find out what will work best for you given your own personal risk level tolerance and current resources.As long as you start doing something then you are going the right direction. 

You would also need to have a strong tolerance dealing with tenants who can be very needy.

Everyone needs to be on same page, same level of expectation, same commitment, same risk tolerance, same level of rational thinking, etc.

I know the Ramsey Method is tough, everything comes down to risk tolerance, using debt to make money to get out of debt, is a rough road, and a scary one, unless you have contingencies, and are willing to live in a van down by the river if need be.

I know that your question is sincere and people often ask the same question.The problem is you don't give us any idea of your goals, you resources, your location, how reliable your friends are, whether you like the type of investing, how much time you are willing to spend on managing the properties, what you risk tolerance is (sometimes people lose money), etc, etcSo, no one knows the answer to your questions but you.

@Jesse Wolf ultimately, this depends on your goal, the type of living situation you want and your level of risk tolerance.