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How important is it to keep a rental property in an LLC? Can I just transfer my (mortgaged) rental property into one?

My attorney friend said that LLCs are overrated for liability protection in rental real estate, and that an umbrella insurance policy is pretty much just as effective. What do you think? How important is it to keep property in LLC ownership instead of owned by you personally?

I currently have a mortgage on my rental property, but I'd like to transfer it into an LLC. My attorney friend said that most mortgages have a due on sale clause that will prevent them from being transferred. But he also said that lenders rarely check and that people frequently transfer properties into an LLC with no problems, and if something goes wrong, they just transfer back to the original name.

So what do you think? Is it worth it to just transfer my rental into an LLC?

submitted by /u/throwthrothroway
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source https://www.reddit.com/r/RealEstate/comments/cj4kut/how_important_is_it_to_keep_a_rental_property_in/
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