While you don't need to hold each investment in it's own liability limiting company, but it is a much stronger way to protect yourself.

@Erik Baumer I stumbled across the Fannie guidelines that @Jerry Padilla was referring to:"If the property was owned prior to closing by a limited liability corporation (LLC) that is majority-owned or controlled by the borrower(s), the time it was held by the LLC may be counted towards meeting the borrower’s six month ownership requirement.

Rental real estate depreciation can help with tax liability.  

You should never want to take any personal liability. 

I have a rental property in Indianapolis, and I just get a homeowner insurance, with a high liability, but now I read that what I should do is to get a Non-owner occupied landlord insurance.

I think you're going to have a lot more tax liability than that. .   

(b) The fact that no deficiency shall be owed or collected under the circumstances set forth in subdivision (a) does not affect the liability that a guarantor, pledgor, or other surety might otherwise have with respect to the deficiency, or that might otherwise be satisfied in whole or in part from other collateral pledged to secure the obligation that is the subject of the deficiency.

Once I hit this point I will be able to buy greater liabilities while still growing my portfolio tremendously.

.- Because of the increased net worth and the liability of being a landlord, the investor will also prefer to have less liability.- The investor would like to be able to do a 1031 exchange of all 10 rental properties for a single larger commercial property, but it's hard to sell all 10 rental properties at one time for a good price. - Thus, the investor is thinking about selling each rental property individually (one at a time) and do a 1031 Exchange into a Delaware Statutory Trust (DST) after each sale. 

A situation like that would turn any cash flowing property into a liability and sink the business right?