Wrap around mortgage income taxable?

[Ike Mouser]

I was considering becoming an expert in wrapping SFH's as my start in RE, but have a few questions? Typical rental income is usually not taxable when all deductions are accounted for. Given that wraps dont have the benefit of all of these deductions, a typical wrap providing me say 5% interest and $350 a month looks way less appealing when the $350 is taxed at 42% ordinary income level.

I like the idea of wraps because once you complete the deal you are 100% free to move on, mostly forget about it and acquire more wraps.  With SF/MF rentals a major issue (roof, foundation, plumbing) could wipeout your profitability for a long time and your time will be consumed with dealing with tenants, toilets, trash, maintenance, etc.(even with property management you will still have to pay and check up routinely)  Whereas the wrap income is guaranteed, the downside being taxes paid on wrap income and inflation vs the wrap income over the life of the note.