As a husband and wife with a partnership llc disregarded entity we are co owners and have 5 rentals that were acquired last year (2019).

Hi, I want to start investing in commercial real estate, with an Umbrella Structure, I was thinking to open an LLC in Delaware filing a partnership tax return ( I will have the 99% of interest as main owner and a corporation than I will open, it will have 1%) and then having disregarded LLC as subsidiaries, opened in the State of the property that I will buy, and with these subsidiaries, I will purchase and sale/hold properties. 

There are some issues with claiming the Section 121 exclusion (for tax-free profits from the sale of a personal residence), but this can be avoided if you have a single-member LLC that is disregarded as an entity for tax purposes. 

It is mainly for asset protection.Especially if you use single member, disregarded entity, all expenses are still going to your tax return.

You may not have as big of a gain as you think you do.(2) SMLLC taxed as a disregarded entity doesn't add any wrinkles or complications under the Sec 121 regs.(3) Both spouses must meet the 'use' requirement to potentially exempt $500k of capital gains.(4) Unrecaptured depreciation gain. 

Lenders we’ve dealt with in the past made our rentals only as valuable as the equity and disregarded rental income...that would be a little extra frustrating with the mixed use land contract purchase.

Disregard Post

Also, disregard all the negative Nancy’s that will either tell you horror stories about bad tenants from their friends’ rentals or that real estate is a bad investment..that we’re in a housing bubble etc.

@Gaelan Bellamy LLC is a disregarded entity by the IRS so it should not matter.

I'm not sure you can legally just sign a new lease and disregard the other one because it was with a different landlord, but I do know for a fact most landlords just decide to respect the old lease until it expires it.