DO NOT MAKE AN  ELECTION FOR THE LLC TO BE TAXED AS AN S OR C-CORP.An LLC by itself is disregarded and files schedule E on your personal return if you're holding rentals or Schedule C if you're doing a business activity such as flipping or new construction.If you'd like you're welcome to ask me all the questions you have on LLC versus Corp.

@Steven Mecke I just got to this comment so feel free to disregard my message!

I found a good one. disregard this post

Every individual has a unique tax situation so its hard tell someone that LLC-->s-corp/partnership/disregarded entity would be the best route for them until detail information is obtained.  

Of course I have disregarded costs and taxes but I think you get the idea.I did not include appreciation or depreciation (market wise) as you have no control over that in any five year period. 

Four of my properties (8 units) are in one LLC and my accountant advised me that being a single member of the disregarded entity is not the best idea.  

I was able to refi in 2012 using HARP 2 which disregarded my lack of equity. 

So one cell could have 2 members and would file a return as a partnership (unless it elects to be taxed as a corporation) and another cell of the LLC could have one member and be a disregarded entity where the income is reported on the single member’s tax return (unless it elects to be taxed as a corporation).

If a single-member entity does not elect to be treated as a corporation, then it is considered a disregarded entity for tax purposes, i.e. all activity within it flows straight to your personal return as though it didn't exist.Remember that in general (since somebody can probably find an exception somewhere), the IRS taxes on flows, not balances.

So if you think making an investment based on a PG is some sort of security I personally disagree with that, and others who may not be that sophisticated in lending should disregard PG's as some sort of security blanket .