Posted by Rich-CA on April 20, 2007 at 23:36:33:
You would use the LLC to help shield your other assets (such as your primary residence) from loss in a lawsuit. That coupled with adequate liability insurance is best you can do to protect you other assets.
The down side: Q/C to an LLC violates the standard clause in a conforming loan called the Due On Sale clause. I have never heard of a bank calling a note due as a result of this, but they could.