However, if someone sues you and wins, they could take all of your rental properties.Better:Using a separate LLC for each rental property.

After contacting four insurance agents, I've been consistently told that I need to purchase two separate policies: one for standard coverage and another for liability.The only option presented to me is the California Fair Plan, which offers limited coverage.

Separate personal finances from rental income to avoid anxiety.

Over many decades it was COMMON not to have separate water.

It can potentially help with asset protection by having a separate entity, but it doesn’t help from a tax perspective.

Do I have to complete the separation of units by January 1st to write off half of my closing costs/other expenses?  

That said, it looks like if I rent out the bedrooms separately, I can earn more for the property overall (500-600 per bedroom vs 800-900 for the whole house.)

Thanks in advanceVery common strategy - I would say if the LLC is buying it then make sure it is buying it and its separate from you as a person -for example if you are getting a mortgage it must be in the LLC name not yours. 

You may have a more profitable exit if you can build them as 1-4 units versus larger and can subdivide the buildings into separate properties.

Again, this doesn’t make sense because my new manager has already said they want me to hold onto the deposits.On top of that, they’re now claiming that I legally need to open a separate account to hold the deposits.