To limit liability you want business and personal separatedI have multiple properties in my own name and use one account for all the properties, but the difference is no partner and no LLC.

So it's basically been a liability instead of an asset and has basically just been siting there.

Unless you want to start your own management company from the ground up I think it's a losing proposition on your pay per hour, legal liability, and overall stress.Find a reputable property management firm before going any further.

Turns out the contractor had liability insurance only.

@Chuck Oese, a better question to ask is "what is your tax liability on your upcoming sale?" 

Any LLC is expected to have sufficient resources in case of liability.

We wouldn’t necessarily be looking for donations or anything, and really don’t want to put it in a nonprofit, but what would liability be in this case?

From the legal side (you should be talking to an attorney as well), it might be smart to have him liquidate the LLC and contribute the property into a new LLC for a fresh start.If you buy into his LLC, you're buying into potential unknown off balance sheet liabilities and lawsuits.

The primary function of an LLC is to help protect you from the liability of a law suit against the property, or to protect an investment property in case you personally get sued.

The main reason you would want to place the property into an LLC would be to limit the liability between the property and your personal assets.