You’re giving very limited information which forces people responding to cover unnecessary points. 

If your AGI is over $150K, passive loss limitations may apply.Setting up an LLC is straightforward but consider state fees, tax implications, and liability protection when making your decision.

LLC) will impact liability, tax deductions, and reporting requirements.Rental income is taxed as passive income, and losses—such as depreciation and property expenses—can offset rental income but may be limited if your income exceeds certain thresholds.

They take decent care of the property, but I would get texts all the time telling me to fix many things (some valid, some completely unnecessary) and would get upset if I ever denied any of the requests.

Nate @Nate Marroquin   You can use the income from your tax returns on the current rental adding back your paper loss (depreciation) and add back the mortgage interest, property taxes, home owners insurance deductions on your tax returns. 

Additionally, they made the argument that, as a large company, if something went sideways with an investment, they would cover the losses.

Would you be taking any pay loss from the job switch? 

I would imagine the LLC will have its own EIN, but we will still report the gain/loss as pass-through income on our joint tax return.

Of course we can cut our losses and switch.

While losses help offset taxes, not being able to count that income towards the mortgage can hurt you when purchasing something new.