I am a W2 employee and made 225k in 2022. My wife qualifies as a Real Estate Professional. We live in CA. We own 2 SFHs in Tennessee bought for 170k and 165k. We own 3 SFHs in Arkansas bought for 110k, 115K and 125k. All were bought in 2022. All 5 are in our name. We are in the process of doing a Cost Seg on all 5 properties. We have property management for all 5 properties. We have insurance on all 5 and have an Umbrella policy for 1M, which we may increase to 2M. This feels like enough liability protection. Since we live in CA with its high cost of LLC and S Corp, it seems more cost effective to keep the properties in our names and or trust.
What is your opinion? Thanks!