@Carl many thanks for your extremely detailed answer. You gave me a lot to think about and certainly clarified some of the misconceptions. Reading through your posts, it appears that in order to lease the property as an LLC, the title and ownership MUST be transferred to the LLC. Noted that lenders are highly unlikely to accept this (makes sense). It feels then, that the best course of action for us is to keep it simple as we had it (owners renting out the second home) and recording income/expenses on the 1040-sch e. Once again, this was extremely helpful - and I really hope that others considering LLC for rental properties read through these nuances.
