He moved to Las Vegas and did pretty good as a real estate man and moved back to Granbury Texas (about an hour from Dallas) where his brother lived.I would not to make such a decision but you have to do what is legal or only accept verifiable employment because you just do not know the liability you are under.  

If too much trouble, then at least make sure the tenants have renters insurance with at least $500,000 of liability coverage, and landlord is named to receive notices if policy in danger of cancellation for non-payment.

And then there is accounting, invoicing, marketing and advertising, legal expenses, liability, insurance...Oh yes, and ideally you want to maintain a decent profit margin on top of all that.

While it’s still true that he doesn’t have liability as per the lender; he may be sued by the seller or new buyer if default occurs in our current legal climate.  

You can specify the coverage level for the dwelling, household furnishings, loss of use, liability, and medical payments to others.

Don't forget liability insurance too.The $395.00 "broker compliance fee" *might* be something he just tacked on - or it might be included in an agreement that you've already signed. 

You won’t save taxes or reduce liability.

When done properly, a series LLC gives members protection from personal liabilities arising from multiple properties or operations without having the extra expenses of multiple LLCs.Series LLC also known as master LLC provides liability protection across multiple LLC entities.

Best long term strategy would probably to take an active role and receive some of the income as "ordinary" income or even payroll for yourself, and the rest as dividends to limit tax liability.

P&L, no.Reason being, the mortgage is debt service against the balance sheet since the mortgage would be a liability.