There are about 20 CPAs and accountants on this site that specialize in real estate taxation. 

Coming from a banking world I think of a fully indexed rate as an index plus a margin to arrive at final rate. but you make a great point. sadly it will never happen, government needs inflation to happen and the double taxation on it.

If so, there are about 20 CPAs and accountants on this site that specialize in real estate taxation. 

I was also told that I should never put real-estate into an S-Corp, but how else could I alleviate myself from the double taxation from LLCs?

Tax at 5k is what my CPA suggested I put off to the side for capital gains.  

It will essentially be taxed as a short term capital gain or regular income tax at that point.

A few differences I like to share between Canada and US real estate1) taxation 2) contingencies on offers.

If you elect to be taxed as a c-corp, the LLC will pay taxes as its own entity, there will be retained earnings, and you may face secondary taxation when you pull money out of the LLC as a salary.As for the 1099 question, any time you run a business (whether as a sole prop, LLC, or corporation), you should be sending 1099s to your contractors!

In a default LLC taxation structure, there are no salaries for the owners, and the profits are all considered SE income (up to a certain point).

OTH, it's not a bad question for a newbie, and to that I would suggest if you are going to be in real estate, become familiar with the surrounding issues (legal contract issues, lending issues, taxation, insurance and RE commissions) that are based on any real estate settlement statement (A HUD-1, for residential is the required form and is a federal document, commercial can be on other settlement statements).