Next Steps-12 Unit Bldg./10 SFH's rented out

This site and the discussion forums in particular are AMAZING. I have outlined my current REI situation below and would appreciate any and all feedback. I want to send out a big thanks to all the individuals that have devoted so much time and energy to providing people so much information!

I currently own a 12 unit (really 2 twin 6 unit bldgs) in Pgh, PA and 10 SFH’s that are rented out in Rochester NY. This is the first year that I will be filing taxes showing rental income and my LLC’s. All of these purchases have occured this year. All of the rental properties in NY are in my name currently. The 12 units in PA are in mine and my nephew’s name. I have loans on 6 of the 10 SFH’s in NY and a commercial loan in mine and my nephew’s name for the 12 unit property in PA. The 12 unit bldg. is showing a loss currently due to being only about 50% rented but we bought it right (about 75% of the appraised value). The SFH’s that I own outright net cash flow $400 while the ones with loans cash flow on average $125 per month. I have 2 Virginia LLC’s created. (Not used for anything yet…were supposed to be for other ventures). I am looking for some general direction in regards to taxes this year and going forward and also any advice on how to manage, protect and grow my real estate holdings based on my current portfolio. Specifically:

  1. Do I need to create a PA LLC and a NY LLC eventually to use the tax advantages?
  2. Are the VA LLC’s even relavent considering that these are out of state rentals?
  3. What asset protection strategies would most apply to me in this scenario?
  4. Any other advice/suggestions you would have that would be useful for me!

Thanks in advance for any replys. I am sorry for the long post. Good Luck to all!