This idea is great for asset protection but in the case where I want cash then it won't work.

Is there anything you can do to protect yourself?

I'm toying with the idea of purchasing a less expensive property outside of my local area for buy and hold purposes, and also toying with the idea of putting an LLC in possession of the property for legal protection and to reap the other known benefits of having an LLC...However, I don't want to ruin my personal chances of getting an FHA loan for a more expensive home in my local area with little down as a first time homebuyer, and I wondered what the word was.Do I still qualify for an FHA loan even if an LLC in my name is in possession of habitable property?

You own the LLC, however you'd have some protection in most states if it were your homestead, so in that case better protection in your own name.  

You will still want someone to draft the note so that it protects all parties.  

But I've been at one of my properties at 11 pm and another day at midnight on a Saturday, by myself, with no protection whatsoever (and I'm a pretty small female) and I didn't feel danger at all.  

Criminal is not a protected class.  

I have a renter who wants to get an outside dog for protection because her boyfriend is going to be working out of town off and on. 

So basically, you are waiving any protection an LLC would afford by electing to treat the LLC as a sole proprietorship? 

Also I was planning to use a corp of some type when I buy for asset protection.