I honestly wouldn't even trust anything QB is telling you when it comes to taxes.You're in a partnership, which acts like a conduit to pass through the income/loss of the activity to the individual owners.

I can afford to have the unit empty, but obviously don't want to do that, and am at a loss around what I should do going forward.

Contrary to what everyone seems to be saying these days, a good agent is worth their weight in gold.

You can also recapture loss's in it compared to a C or S corp. so it does have tax planning benefits.  

Someone told me its very hard to sell these properties and you have to sell them at a loss if you want to get rid of them.

My loss was only $500 BUT I didn't follow my instincts and I got burned.Please BEWARE of an email from Jason N Coogler from Prime Access Loan located in Perry, GA.

Or don't and suffer huge losses due to subpar leasing and property management operations.

Your profile mentions that you are an agent with rentals.You would want to see if you are able to claim real estate professional status.If you are able to claim real estate professional status, you can potentially offset the rental losses with your real estate agent income.Furthermore, TN does not have a state income tax allowing you to be more open with your options.Best of luck

Having an or multiple LLCs helps keep the finances separate should you have a loss.

Year 1 is probably a loss though so that is something to consider.