The single member LLC would be classified as a "disregarded entity" and would be treated as if you had bought the property personally. 

@Ben Leybovich, don't you feel that the issue is less of the loss of income and more that fact that the PM disregarded his instructions?

A single member LLC is typically disregarded for Federal income tax purposes so it would have no effect for that specific purpose.

Tyler Jahnke's post I bet did un told harm to many who were on the fence and every month when he would post he got a check boom I bet someone jumped in disregarding the negative feedback that was coming on the site or the experts warning even done well these are high risk purchases.Marry that with little to no rehab and you have a financial disaster .. what these clients were sold and reality could not be farther from the truth.. and what I mean by that is the statements that D class low C class tenants are just thankful to be there are easier to manage than B or A.. that is just patently absurd. but I guess that is Morris opinion but not based in reality from those in the industry and you PM's could talk to that.As for what do to if your investment is under water and in bad shape..

Once it's set-up it is rather easy, as it's considered a "disregarded entity" by the IRS.

Do we know if the 20% deduction on net taxable income would be applied (or available) for LLCs classified as 'disregarded entities" and operating a business for "rental" activity or "passive" activity?

This is the only strategy that I am aware of that allows you to offset your W2 taxes. i am very happy to hear from you, nice to know i am not alone. if you don't mind i would like to build on some info from you, 1. how far is the place you bought for STR from your residence, 2. are you managing yourself or hired a STR management company3. what type of property you bought, condo / SFH etc 4. location and price point if any of these questions are too intrusive, please disregard them.thanks a lot 

I can't believe how brazen some people are when it comes to disregarding pretty black and white rules.

You say that we don't get anywhere near the ROI as other parts of the country, which is a true statement if you only count the operating cash flow and disregard appreciation and rent growth.  

A pet policy does not allow you to disregard the Fair Housing Act, which says (basically) you cannot discriminate against people with disabilities, which includes service animals.