And you lose depreciation and deducting expenses against income.  

@Yoon Chong I do not think you will be sued, but it is worthwhile to have some type of coverage over the maximum deductible allowed.

Not as many complexities with a few rentals, but there can still be significant issues depending on entity structure - even if they are all "disregarded" entities for federal tax purposes.If your W-2 is your full time gig, and they are all passive long term rentals, there very well could be likely not a lot of active planning to do on the real estate side, outside of getting some general knowledge out there, having some longer term plans, and ensure deductions are being maximized in the isolation of those 5 rentals.

I am not able to deduct depreciation on my rentals due to my AGI being too high.

Realistically, I believe that the tax deductions are the most valuable asset when it comes to buy and holds.

It really does depend, you don't need the LLC setup to do the things you want to do and you'll still get the tax deductions.  

I'm at the point new where I need to figure out if I should pay up in taxes and pass on deductions to report up or just write down and go non-traditional.

Otherwise, you need to file a 1099 to that person for the principal amount so that you can deduct it from your taxes as an expense to balance out  LOLGood luck.

My properties are in coastal Florida, I understand expensive coverage but theirs includes a 25% wind deductible.  2.  

The billing cycle does not coincide with the tenant's move-out date. how do you deduct the tenant's share of water from their security deposit?