Looks like a monthly loss based on quick numbers.

We just set up an LLC at the advice of my accountant so that our profits (and losses) are handled in one place, receive tax benefits, and come tax season, everyone can easily handle their share of income tax based on our (unequal) division of shares in the property (it's not split 3 ways).

They required 2 DE LLC's: LLC#1 my husband and I are 50/50 partners and LLC#1 is sole member of LLC#2 which will be the borrower for the loan and it is a disregarded entity.Since the expense has been incurred and we are set with another lender, and since LLC#2 is registered to do business in the states where the rentals are located we would like to use the setup.To date I am a Real Estate Professional, this is what I do full time and my husband holds a job.I believe that there will be no issue taking the loan to LLC#2, changing the deeds when the loan closes from us to the LLC and that income/loss will pass through to LLC#1.I believe that since LLC#1 is a partnership that again we still will continue to report income/loss to our personal return and I can continue to be considered a Real Estate Professional. 

This is probably a better question in the tax section, but if you meet the definitions of running a business, other than limits on claimable losses I don't see anything wrong with your strategy. 

@Sam LiuYeap, that is exactly what I concluded 10 years ago - low return and a waste of time....Glad I was gutty enough to cut loss right away and came back to CA, and had more than recovered all the OOS loss...

. $2900 rental income. 40% expenses = $1160/month Opportunity value of $450,000 @ 10% = $3750/monthNet monthly loss = $2900 - ($1160 + $3750) = -$2010/month......- $24,120/yearNot a investment by any stretch.

The average cost of a call for advertising in large complexes we were told was $60.00 so if we missed a call or failed to book a showing, or refer a call to a sister property if we were full, they figured it was a $60.00 loss per call. 

I expect to cut my losses on the 2 duds a 10 unit in Cleveland Heights, right by South Euclid and an 8 unit in Shaker Heights.  

That 1% paid to the mortgage broker is chump change compared to the losses you could incur from the financing actually not happening.2.

Selling the home from out of state is not very difficult just find a good realtor, since you just bought the house you can expect to incur some loss due to broker commission etc..