What LLCs Actually Protect
A properly maintained LLC limits liability to the property's equity — protecting your other assets from tenant lawsuits. Insurance does most of the heavy lifting; the LLC is the backstop.
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Financing Tradeoffs
Most residential lenders won't lend to an LLC. Common solutions: close in your name, then quitclaim to the LLC (risk of due-on-sale clause), or use DSCR/commercial loans that lend directly to entities.
Operating Discipline
An LLC without separate bank accounts, contracts, and bookkeeping is 'pierced' in court. If you can't operate it as a real entity, you're paying for paperwork that doesn't protect you.