I wonder if you can find some if their other clients and band together for a single lawsuit.

Whatever your course, if you wish to sell, you must disclose known problems or be facing a lawsuit.

@Ryan Mattson Definitely get a separate bank account for the LLC or you will open yourself to possible lawsuits where your LLC will be disregarded and will lose all of its protection.  

I also wouldn't purchase properties outright because it diminishes your cash on cash return, limits your tax deductions, and make you a larger target for more lawsuits because of the high equity positions; additionally, I think you should take advantage of the interest rate environment now while they are lower.

Regarding the coverages within the policy, at a minimum, rental properties should have three coverages: General Liability CoverageBuilding Coverage Loss of Rents / Business Income CoverageGeneral Liability Coverage - covers against lawsuits claiming you are responsible for Bodily Injury and/or Property Damage.

This home has a garage that has been converted into a mother-in-law suite with its own kitchen, bathroom, and separate entrance.

Title will not do it as they do not want a lawsuit for negligence.No legal advice given.    

We did take out a $1 million umbrella policy for the property, as well as umbrella policies on our personal insurance as well, so we should be pretty well protected in the event of a lawsuit.  

If you setup the parent/sub structure and commingle funds between entities it may question whether you have actual liability protection but in a lawsuit I would rather say that the LLC only owned one property than have to give them a list of assets containing many others. 

I would rather dissolve the LLC then expose myself to possible lawsuits against myself.