If you mess up as a landlord and disregard renters rights, the tenant could make a complaint to the local magistrate and you could be fined. 

But they were out and I just couldn't bring myself to give them anything because the damages were due to nothing but utter carelessness and a complete disregard for the property. 

Disregarded entity, partnership, S Corp, C Corp?

Now, if you want to potentially have to make that effort, then disregard recent court cases such as this.

The IRS will disregard the expenses and allocate it all to the Schedule E.Also Schedule C losses are deductible in the current year whereas Schedule E may be limited in many circumstances.

Aren't you then a disregarded entity, and don't file taxes for the LLC itself, but just as part of your personal tax return?

It is referred to as a disregarded entity; this means that it will be treated as nonexistent unless you: 1) take on partners 2) elect to be treated as a corporation(defaulted as a C-Corp) 3) elect corporate status and make an S election using Form 2553.The LLC route is a bit pricier; however, most attorneys will recommend the LLC for liability protection.

Do you think I should instead disregard market value, and simply pursue it based on the long-term potential?

Disregard Q2.

Designate an authorized agent, pay any required franchise taxes, file annual certificates, etc. as may be required by your state.I have never heard of a case where a court disregarded the LLC as an entity when the owner had done these things.