Pros:
-If the LLC(s) is registered in a state with strong privacy laws, it would be very difficult to impossible for someone to find out that you owned a property by snooping. This can greatly reduce your exposure to a frivolous lawsuit.
-If you properly separate the finances for each property and do not co-mingle them with your personal finances to avoid piercing the corporate veil then you have a much greater chance, if a lawsuit does happen, that the liability will not spill over from your real estate to personal assets, or vice versa.
-Some landlords who manage their own rentals prefer to play the nice guy with renters and represent themselves as "managers" to blame policy on the "owners" when enforcing unpopular decisions like late fees.
-LLCs are pass-through entities so your taxes and ability to control your rentals are the same (ie: evictions).
-Your LLC(s) will be building their own credit by collecting rent and paying non-mortgage expenses. This will open up the option for you in the future for the LLC(s) to purchase property directly and more easily obtain portfolio loans once you have maximized your own ability to purchase property through mortgage loans.
Cons:
-You will have to pay for the properties to be transfered to an LLC(s). Depending on your location and whether there are transfer taxes, this may be expensive.
-You will need to register and maintain the LLC(s). The costs of this vary widely depending on where you live.
- As tmbrown mentioned above, there is a risk of the due on sale clause being triggered if you have mortgage debt on your property. I recommend doing some googling around (particularly on bigger pockets) so you can decide for yourself how that figures into your own risk tolerance. For me, there is a tipping point at which shielding the equity of the property is worth more than the inconvenience of having to either transfer the property back to my name, obtain a new portfolio loan with the LLC as the borrower or pay the mortgage balance with savings.