Taxes for LLC with paid-off properties

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Hello, I wanted to get an idea of what the end-of-year taxes are like for LLCs that own properties. Specifically for this scenario...

We expect to pay off my parents' home by early 2017. My plan is to establish an LLC that I would own and transfer the house to the LLC. My parents and I are aware of the tax implications with the transfer. We do not plan on renting out house to anyone. My parents would live in the home after the transfer but would mainly be traveling. They do plan on paying rent to the LLC but way below the market rental value - just enough to cover annual taxes and utilities. LLC will pay for home insurance and whatever else is necessary.

I've read the discussions about paid off properties and various ways to leverage them. I do have a plan in mind for the property under the LLC but for the most part, the plan is very conservative since my parents are still living there.

At a very high-level, the expenses for the LLC in regards to the house would be: annual property taxes, home insurance, and utilities. Income would be rent from my parents which would would even out the expenses.

I am more interested on how taxes for the LLC would be like at the end of the year.

My questions:

1. I understand that, as an individual tax payer, there are considerations for rental properties vs. personal/vacation properties and cases where expenses will not be deductible. Do the same rules apply to the LLC? For example, would I be able to deduct the annual property taxes, insurance, and utilities costs?

2. Are there any legal issues with an LLC renting out a property below market value?

3. I file taxes married/jointly. All income and losses for the LLC would pass-through to our taxes, right?

Thank you.