That is a big liability for you.

Liability insurance ranges from $75-$125 per unit when working on this size portfolio.

@Rick Baggenstoss  one take away is for all of you who think you get liability protection from an LLC  think again  LOL.This guy was speculating he should have boarded the houses up... in many of these areas its financial suicide to rehab and rent...

You tax preparer should be able to file a schedule e for you under which you can report earnings and expenses for rental property - even if it is owned in your name.3) Lastly, owning a property in an LLC is great for liability protection, however, it can prevent you from obtaining conventional mortgages, which offer the longest terms and the best rates.My 2 cents!

The idea is based on the assumption that your strong operations background is your biggest asset and the circumstances of you being unemployed and "fully depreciated" can be flipped from a liability to an asset.

If terminating the lease would expose me to liability, would it be within my rights to require the new tenant to sign an addendum prior to move in which addresses some of my concerns?  

.- Principle against the Long Term Liability account for that property's mortgage- Escrow account specific to that propertyShould probably be using classes instead of multiple escrow accounts, but this way I can reconcile those escrow account balances easily.It all sounds like a lot of work, but I personally find that the rhythmic focus on the numbers and necessarily frequent review of the P&L and Balance Sheets are critical to running an efficient business.IMO this should all be primarily done to help the business owner understand the business and only secondarily for tax purposes.

However, the 2nd mortgage note holder May, or may Not, have released the liability (debt) to the owner. 

I know gas is cheaper but all the bills will be in the tenants name and not having any gas in the house would help me from a liability point of view because if something were to go wrong with gas it usually does not end well.

Also keep in mind that if you are asking the attorney to perform a service for you in a creative transaction that they can assume liability in the transaction and may not be interested in the risk.