I thought about electing S-Corp status but you get into E&P issues and more passive activity rule issues then.

See below copied directly from the IRS website:Safe Harbor Election for Small Taxpayers-You are not required to capitalize as an improvement, and therefore may be permitted to deduct, the costs of work performed on owned or leased buildings, e.g., repairs, maintenance, improvements or similar costs, that fall into the safe harbor election for small taxpayers.

I hope you and I are in the position to use this election soon. 

You can just elect not to do what they want and therefore it won't be available.

Also, an LLC can elect to be taxed like an S Corporation.While there is never only one answer that is correct for all circumstances, there is a general rule that is almost always the correct choice.

The cool thing about an LLC is that we can retroactively elect the S status if we deem it necessary and we can retroactively reclassify distributions as salary.

If more than 20% of the revenues in the S-Corp come from a passive activity (which rental income falls under), the IRS can choose to negate your S-election and convert you to a C-Corp.

Had the honor of serving as the student body president while there too! 

LLCs can check the box for S-Corp election and pay employees W-2 salaries to offset profits subject to self-employment taxation that would be on Schedule C self-employment income as a disregarded entity / sole proprietorship.9.  

If you elect to have the LLC treated as a company, you need both a corporate return and personal return.