Disregard this letter if it is not applicable or you have no interest.

Should I just walk away or disregard the neighbors "rumors" and sign the disclosure?

Will a potential buyer completely disregard the beautifully remodeled unit because of the hallways and elevator they just had to walk through to get to their unit?

If you treat your LLC as a "disregarded entity" and file on schedule E you could possibly set up a separate Llc property management company and pay it a property management fee to get your "earned income" and file the property management company on a schedule C, but you would owe self employment taxes on your earned income, your state taxes and possibly other state  requirements such as workers comp, and unemployment tax depending on your state.  

I have concluded my dealings with him and am grateful for the experience so that I can now how to verify the legality and honesty of future person I deal with.In short, kindly disregard any notices from @Frank Howard.

For Nick to be put "up against the wall " he will have had to perform a dishonest and unjust act as an individual, in the guise of his disregarded LLC.

Disregard everything I said before, as to your situation.

Is 100% of the exchange disregarded or only the value of the property that I didn't close on? 

And the only way around CCR's is to disregard them and do what you want (hahaha) however that's obviously not sustainable.

A SMLLC is treated as a disregarded entity for tax purposes unless you've made elections to be treated as something else.1a.