Schedule E typically caters to rental income and certain types of passive income, while Schedule C is tailored for reporting profits and losses from a business or self-employment. 

One vision is to bring it up to market rent standards, rent it out, and potentially refinance to leverage our equity for further investment opportunities.

If you more than one owner/member in a LLC, the LLC will file a 1065 partnership return, but all that does is spit out a K-1 (like a w2 or 1099) showing the profit / loss that you need to report on your 1040 form.If the LLC is single member, then you will basically continue file addition SchE for your long term rentals. 

When income from rental properties is considered passive, it is subject to passive activity loss (PAL) rules.

Current CPA says you can form an LLC and take any losses as a K1 loss on your personal taxes. 

If a property is making no cash-flow, when depreciation is factored in it is a paper loss on your taxes.

Hello Mandy,  I work for a company called Visioneering Studios, we are a design+build firm that focuses on churches!

Sam,I would add a couple things from the Insurance side:1. request copies of loss reports (AKA Loss Runs) from all their insurance for at least 5 years2.

And that risk of loss of that interest has passed to the buyer.  

No "headaches" except for risk of near total loss of principle unless I put more money in...I'll take the risk of a project that I need to complete personally in exchange for a near-perfect risk/reward profile and complete understanding of the investment.