Have a single LLC (the most common entity choice for investors) for real estate holdings. Keep your rentals in one LLC; this LLC does not partner on other projects or conduct other services (e.g. contractor work). All the LLC does is hold property.
If you have a short-term portfolio (read: fix-and-flips), then put those in another LLC. If you're a home repair person or property manager, then that service is performed in a different entity. The crux here is that you limit the exposure (i.e. the liability) of each LLC. In theory, a plaintiff can only go after what is in the LLC/the value in the LLC. So, if you get sued as a contractor, the plaintiff can't get ahold of your rentals because it's a separate and distinct business.
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