It's not just financial, Cleveland is/was trying to pass criminal liability onto property manager's if the owners didn't make repairs to their properties.

So something no one else has mentioned.....The BIGGEST reason you should always utilize an agent when purchasing a home is Liability and legal responsibilities.

Reduce Tax Liability – When you categorize various components of a home’s exterior and interior, you can accelerate depreciation on these components.

Now that I have read multiple posts and received recommendations from others and read BiggerPockets threads, I am inclined to create Entity structure to avoid any property liabilities and get tax advantages using income shifting strategies for my 1099 revenue from small IT LLCThis is what I am thinking and need some inputs from others on this channel.

I already own an LLC (residential contractor) and understand the liability benefits of running this deal through the LLC.I'm only asking about the differences from a business perspective (taxes, showing the income as business income vs. individual income, etc.). 

The building might never be a total loss but you very well could have a liability claim big enough for the insurer to investigate that.  

LLCs are over-rated for liability protection and/or tax benefits.

I'd have a liability insurance policy but would they also need one?

This structure is not cheap to setup initially, and the annual admin costs are substantial, however gives peace of mind that it offers the ultimate liability protection and most efficient tax structure. 

They would not renew unless the roof is replaced, and liability limits were cut in half.