@Pat McQuillan, As you mentioned, it’s an pass through entity, so everything passes to you if it was multi member LLC.If it is single member LLC, it is disregarded for tax, and your tax return is not going to change at all.

Also, many banks will not lend to an LLC for the first property in a portfolio and will likely want you to hold it in your name for recourse purposes.If you are the only owner of the LLC, the IRS classifies it as a disregarded entity, meaning that it will be taxes like a sole proprietorship (unless you fill out paperwork to request otherwise) so it probably will not offer any tax advantages at this point, but rental properties have a lot of tax advantages built in already.I think that LLC's are important at some point, but I don't know if it is the most important consideration at this point.

I kindly apologized and told him that he may get a couple of other pieces of mail and to just disregard.

Disregarding damages and a few other issues at the property, does the single fact that they broke the lease entitle me to keep entire deposit?

Irs allows you to treat a single member LLC as a "disregarded entity" basically you get the liability protection of an LLC but you can file your taxes on schedule E like you own it personally.

I can't imagine they would be charging you for managing the LLC as an entity, as it is disregarded, and doesn't require any tax reporting. 

I'll have to call my CPA and ask about that, because that just sounds like a ridiculous rule (not surprising coming from our federal govt - but ridiculous nonetheless).If that's really true, I guess you can disregard that particular "selling point" I mentioned above.

When I did his taxes for last year, I disregarded depreciation completely.

If you are then just disregard since that's all I got

Disregard distance as a consideration and buy somewhere where the deal looks good. 3.