I've worked with real estate investors and landlords for years by providing asset protection strategies to dramatically decrease their chance of being sued while also protecting their equity and assets in the event of any type of suit.

There are measures you can take to make it less obvious and further protect yourself.Then my next question would be if it is that obvious that it is being renovated and not owner occupied then what are you doing to protect your investment?  

Examples of such work or tasks include guiding people who are blind, alerting people who are deaf, pulling a wheelchair, alerting and protecting a person who is having a seizure, reminding a person with mental illness to take prescribed medications, calming a person with Post Traumatic Stress Disorder (PTSD) during an anxiety attack, or performing other duties.

Department of Health and Human Services states: "Medicaid liens protect Medicaid’s interest in the recipient’s former home and its right to recover Medicaid spending before the property can be conveyed to another party.

Basically it just means choosing the work or activities you want to do, and having passive income to sustain (and protect) your chosen lifestyle.

It depends on what perspective you look at it from in CA theres an 800 per year CA franchise tax fee per entity so it would only be feasible if the investment made enough to justify the fee or if the risk was so great that the 800 was justifiable because of the protection needed.Perhaps a better question is what you hope to achieve by creating a LLC?

Are registered sex offenders a protected class? 

His priority is to protect lives and property, and has seen a lot of stuff we haven't.  

You are selling an investment to the public, whether you know them or not, they are still protected.  

I agree with Joe Gore that, for one property, all the corporate stuff is really not necessary, especially if you don't really have any assets to protect, plus the fact that, if anything goes wrong, taking title personally and subsequently transfer to an S Corp. won't exactly hide ownership or protect you.