Using an S-Corp and an LLC together- rental real estate

[Dima A.]

I have seen several investors do this, but cannot fully understand the benefit, and I am pretty well versed in tax and entity structures.

Situation: multi-member LLC owning rental properties and only has passive income. Instead of owning the share of the LLC individually, it is owned through an S-Corp which is then owned by the investor.

So income flows from the LLC to the S-Corp, and then to the individual.

Can anyone think of the benefits of this structure?