Read lots of things on the pros and cons of each way to operate real estate. For the person who has 2-3 SFH rentals, what is the actual advantages to using either a standard LLC or a Series? Lots would say for 2-3 rentals insurance is more than enough. Any thoughts or experiences?

All under one LLC. Pro: save $ on filing costs. Con: lose all in a lawsuit.

Each has it's own LLC. Pro: lose only one in a lawsuit. Con: $ on filing costs.

Series LLC. Pro: save $ on filing costs and only lose one in a lawsuit. Con: newish in the legal world and unknown what would actually happen in a lawsuit.

Good summary by Martin. It's often mentioned that a negative of the series LLC is that it's rather new and so it's not real sure how courts will treat them.

Series LLC has been available in Texas since 2009. Now it's 2022 and there is very limited case law and litigation about the series LLC. Meaning, it's performing as intended and providing the protections intended.

The only real negative I've come across is some title companies may ask for additional information about the LLC when handling a closing.

So would you both say of these options is necessary beyond just insurance/umbrella coverage?

If you are asking would you need an LLC if you already plan to have insurance and umbrella coverage in place, you will get different opinions.

I would say to have an LLC with the coverages in place. You can form as a series LLC initially and it functions as a regular LLC. It doesn't begin to actually operate as a series LLC until you "open"/ add a series to the initial LLC. Many times people never even open another series of the LLC, but it is in place and ready to go.

Sorry, I phrased that poorly. Thanks for describing all you have. It's helpful!

To put it more directly, are LLCs (series or standard) needed for 2-3 rentals or is insurance enough? I know different answers but trying to get some perspectives.