Unless you elect to treat the LLCs as corporations for tax purposes (C or S) they are treated as disregarded entities for tax purposes (which means the management relationship would also be disregarded for tax purposes) so in effect the tax consequences would be no different than holding the properties directly in your own name. 

If you don't maintain the LLCs correctly, you might as well not have them, because they will be disregarded in a lawsuit.

I just wouldn't advise a typical client from out of our area to disregard the numbers costing they would likely use one of our local companies.

Difficult to tell without knowing the tax status of the holding LLC (partnership I presume) and subsidiary LLC (disregarded entity I presume).If the LLC has no items of income, deduction or credit, a 1065 isn't required, but certain states may still require a partnership return even if a federal return is not required.Please don't try to DIY a 1065. 

So selling as yourself and buying as that LLC or yourself would be permissable as the LLC is a disregarded entity. 

., Land Trusts, if properly structured, a both pass-thru entities and disregarded entities. 

In this case can the LLC be considered as disregarded entity and can it be filed under 1040 Schedule E or will it still be treated as partnership LLC and file 1065 form and issue K1 to the trust?

From the research we've done, we're leaning towards creating a WY LLC as a holding company and a disregarded FL LLC to acquire our properties and flow money through. 

I would likely treat the duplex as a long-term investment, focus on the cash flow, and disregard the fact that it's supposedly worth less than what I paid for it.

If I laid out a business plan and the cash flow equations I have done would this help them disregard the lack of income?