It'll certainly be nice to no longer deal with that issue as much in LA with good weather and private outdoor space for her to let that energy out.It's always great to hear from REAs who are also investors themselves.

No 10 or 15's in the outdoor drive-up. 

However, I usually advise just to get a really good (and large) umbrella insurance policy on the property instead.

Should I start an LLC or umbrella insurance is enough6.

Simple works for me - 21 SFHs, 1 checking account, 1 spreadsheet, 1 LLC, 1 umbrella policy, 1 Ford Ranger, 1 cell phone, 1 Cozy account.

Have good coverages on your landlord insurance policies and get a minimum $1mil umbrella policy  

All in cost to build (including contingency and interest reserve) is $177k per unit for 500 square foot units with separate bedroom, full kitchen, and living area, with a pool, gym, laundry, outdoor courtyard, and grilling station. 

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is likely to be higher, then you may consider an umbrella insurance policy.

The DSCR may be a fit, there also may be other options under the portfolio umbrella, sometimes you can get exceptions to the rule if it makes sense.

You can also insulate yourself with umbrella insurance.