I should be covered through insurance.So, finally, my question is: how do you limit your exposure to legal liabilities as you your real estate net worth grows, assuming traditional mortgages remain an essential part of your strategy (i.e., an LLC won't work)?

It's not a dangerous breed and the insurer doesn't have limitations anyway.

Having a separate reserve bank account is also good practice (but not necessary) since it will give you a better idea on how much fund is readily available for reinvesting or withdrawal. 

I have extracted all of my investment (purchase and value add costs) via refinance).My recommendation is to not limit yourself to the high cash flow properties to achieve your ROI goals. 

They moved from Cali to Wisconsin a half-decade ago due to the high cost of living on the west coast, which limited their investing opportunities. 

I was told that everything would be free ( fees) if I took an immediate withdraw of 15k.

But once on an escrow account for a note we held, they deposited then somehow convinced the assistant Bank Manager to allow them to withdraw it all.

I do have very limited time at the moment, given my job and two kids (3yo and 3mo), but I have no problem getting my hands dirty or doing what it takes for some freedom in the future.

Profit sharing plan can shield around 60k of income. 3) Hopefully, you/brother also have IRA and HSA to decrease your AGI. 4) You can lease the property to your corp allowing withdrawal of cash from the business that is not subject to FICA (rather than paying yourself a compensation). 

If I had a limited budget I am buying a laminate floor that has a thicker base 10-12mm than an LVP floor that is 3mm.