But then, some would argue that instead of LLCs (costly), I should hop for an Umbrella Insurance. 

Leasing, property management, tenant billing, lease administration, finance, capex budgeting, etc.  

I imagine SF and MF have a lower cost to play? 

The breakdown of costs you've provided is insightful.

That will help move the decision along.What about checking on cost of materials there?

Since it is more than one year I own the house I was thinking to do cash out financing on 2 rentals...they both are worth around 125k and get 1500 rent.I went to lot of banks and everyone is quoting about 4000 dollar closing costs for each house for cash out financing.

See the 2020 aerial view below.Very little undeveloped private land is left in the Las Vegas Valley, and desirable areas cost more than $1 million per acre.

However, I have some concerns about the potential costs involved in mold remediation, especially if it requires tearing up drywall.I'm considering whether I should inform my insurance company to see if they can cover the damage.

Who pays the closing costs on these deals? 

This can be in the form of cash, paying their agent fee, part of their moving costs, etc.Remember, the goal here is to end the lease peacefully and legally, respecting both your rights and those of your tenants.