We try to do a walk-through with the new tenant at some point to show them emergency shut off locations, instructions on filter changes, etc. so I wouldn't recommend just dropping keys off and that's it, but I have had probably 2 or 3 tenants over the years that I never met, just talked to by e-mail or text.  

Do you perhaps know where the checkbox for passive vs nonpassive is on Schedule E?

If 10% per your example, maybe not since doing nothing would get me close to 4%.d/e.  

Overall, he seems to want to do a basic cost seg for me on the FF&E and Capital Improvements and leave the original basis of the property on the conventional depreciation schedule.I would love some feedback, personal experience, thoughts on this matter.

You have to weight different factors.

Quote from @Scott E.: Goal: Don't go bankrupt.Joking, kind of.

Quote from @Victoria E.: I have a tenant who has moved out and  i now have a judgement against. 

It's like only using weight to compare fitness levels.

Annually, the Management LLC would "distribute" to the Property LLCs, but it would all flow thru to your 1040 Schedule E - unless you get partners, which would require a 1065 return with K-1 distributions to the partners.

SCHEDULE ESchedule E is the SEXIEST Schedule to investors (that's right, I used sexy to describe tax returns).