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Real estate is one of the best businesses to be in right now, but I likely don't have to tell you that. It's also one of the best long term, for rentals and long term income and wealth building. The risks in the business that you are trying to minimize include:Personal
risks to your portfolio. Divorce
is the big one. Partners (you don't mention any).
Decline in rents (not likely), slip and fall at one of your rentals (insurable, also not likely), increase in the cost of borrowing (not a problem in flips, and your rentals are likely at low rates), injuries on the rehab jobs (depends on the contractors you hire).
The idea of a business entity to control things makes sense. An LLC
as a management company would do a lot, by limiting your personal liability
for the business risks. The problem is the financing is in your personal name.
If you can transfer the entity doing the flip deals to an LLC, the bank would eventually lend to your company. That covers most of your business risks. You can buy workmen's comp, liability protection if you want it, but no claims would stick to you.
Personal claims, like divorce, a car accident you are involved in, etc. could be covered with some very inexpensive umbrella liability protection. It covers 'over the top' so that your personal holdings would not be at risk even if claims against the flips or rentals could be made against you.
The LLC has other advantages
as well, if you ever decide to get bigger and take on investors or partners, or to preserve assets for your heirs, to name two examples.
Please ask any follow up questions you may have. Thanks for asking at Just Answer/PDtax.