Disagree.
Regardless of the losses, the revenue and expenses has to be reported. The depreciation is what pushes the profit to loss over 26.5 years, and that is recaptured, if and when the property sells. Amazon reported losses for 6 years and the IRS never considered it a business not meant for profit. But would agree that if you reap a profit from the LLC, then you would report that as positive income on your 1040.
You do need to set the rent to market rate.
