If your intent is to fix and flip the net profit is taxed as ordinary income. 

I thought LLCs were generally treated as pass-through entities by IRS.The only tax advantage I can think of would be if the LLC was taxed as an S-Corp and some of the income was distributed to me from the S-Corp as dividends which are taxed at a much lower rate than ordinary income.

Gains from flipping are ordinary income.

We have a tiny patio at our 1/1 and they all remark about how nice it was to have that "bonus" living space. 

Probably not the best solution if there will be a dog out there, but for humans it might be something to consider.https://www.homedepot.com/p/BTMWAY-1-ft-x-1-ft-Square-Interlocking-Acacia-Wood-Quick-Patio-Deck-Tile-Outdoor-Checker-Pattern-Flooring-Tile-10-Per-Box-CXXBN-GI33346W685-Tile01/319917002Good Luck!

Hi,We own a few single-family properties in the Phoenix area and they are all managed by the same property manager for many years now.Since these houses aged a little bit and have normal wear and tear it's time to make some larger repairs, such as replacing rotted siding panels, fascia/soffit boards,  support columns in the patio, fixture replacements etc...For years our property manager pretty much handled all of this, but it seems to me that the quotes we've been getting recently are overblown.

Then at the time of distribution - account holder will be paying ordinary income tax.

One accountant told me as of the day the house was vacated ALL expenses incurred, whether ordinary monthly maintenance or actualy repairs/upgrades will ALL go into the basis to offset the gains in 2017 when I sell it3) I will be doing all the expenses and improvements this year 2016 and listing it Dec 1, no way it can sell and close in this tax year.  

@Kenneth Goldman ten months without a deal is not out of the ordinary.

Material participation or active participation comes into play when its time to net your rental loss ( passive loss) with your other ordinary income ( w-2) Generall rental loss cannot offset other ordinary income, but there are two exceptions:1) You can net rental loss with Ordinary income if you are RE pro.