Oh yes, there are times that putting rental into partnership, or an S-Corp or C-Corp does make sense. But I can't think of a single instance when it makes "sense" to put rental into a single member or multi-member LLC.
If two or more people own a rental property and those owners are not married and filing joint, then it makes sense to put the property into a partnership. Not a multi-member LLC per-se, but just a simple partnership. It makes the paperwork and division of income/expenses significantly simpler, regardless of the ownership percentage of each partner. Also makes reporting the sale that much simpler since the sale is reported on one single partnership return with any gains/losses on the sale reported on each partner's K-1, regardless of the ownership percentage.
Putting rental property into an S-Corp or C-Corp makes sense when you are "in the business" of acquiring property that is intended to produce income and that income is the primary source of one's financial needs. So this would come into play only if you have say, more than three rental properties and the cash flow from those properties provide more than half of your monthly and yearly income that one needs to survive and get ahead. I know of people in my own hometown here (don't know them personally, just know "of" them) that have 10-15 rental properties in an S-Corp and they depend on the cash flow from that property income to provide for their financial needs at the personal level. So for those folks, an S-Corp makes perfect sense.
