Protect from what?

@Marc Zak Using an LLC for each property provides strong liability protection by isolating risks to individual assets, with income and expenses flowing through to your personal taxes on Schedule E.

Like these illegal immigrants, those will deflate multifamily and single family demand.

No, you cannot create phantom losses this way.Some additional issues that we have not addressed:- holding rentals inside an S-corp has many tax disadvantages- you will likely jeopardize your $250k/$500k capital gain exclusion for homesteads- you will lose asset protection afforded to personal residences by most states- you will lose your homestead exemption for local property tax - your insurance will have to change from owner-occupied to rental, i.e. go up- and there's moreConclusion: there're reasons why nobody is doing this clever "strategy" but A+ for trying.

I misspell myself, :-) but the statutes to concern yourself with are12 United States Code USC Section 1715Z-19and theConsumer Protection ACTand a couple of others if you are interested.  

My strategy incorporates asset protection measures like LLCs, specific trusts as well as professional property management to spread risk and ensure quality operations.As well as using tax codes to my benfiitSection 179, IRC Section 162, Cost Segregation and Bonus Depreciation and later 1031 them out for larger projects. 

An LLC when properly formed and administered provides separation and protection of assets that are outside of the LLC from the actions of the LLC.  

Some kinds of auctions allow you similar protections as a traditional sale.

CA also in the last 30 years really beefed up the protection for fractional TD investors.

An LLC offers some liability protection, BUT states vary with the cost to get and maintain an LLC.