This inline space is 3085 square feet which limits the options on tenants. 

@Stephen SmithReno's multifamily/commercial market faces challenges like limited inventory, high demand, and high entry costs.

My limited experience is that anything except the Bronx seems not a bargain.

Problem is only "RE pros" get to do it.There are 3 income classifications in the US - Active, Portfolio, and PassiveActive income is income derived from your job, or normal trade or business.Portfolio income is derived from bank instruments - stocks, bonds, etc.Passive income is income earned from investments.Active losses can wipe out both passive and portfolio income, but it doesn't work the other way around.Portfolio (capital) losses are limited to $3,000 annually.Passive losses can only be offset by passive gains.Real estate rental income by its nature is deemed passive per IRC Sec 469One way to get around it is to become a pro - spend more than 750 hours or 1/2 your time in real estate.But most folks aren't real estate pros.

As mentioned, they often come with limited returns and still require management.I’m curious—when you say active investing doesn’t appeal to you, is it because of time constraints or concerns about risk?

Consider creative approaches like short-term rentals, ADUs, or co-living spaces that maximize income in limited spaces.

I managed one in Saint Petersburg FL (in city limits) that has had a 30 day minimum rental on the books for decades. 

For one, if you have any properties with conventional loans on them, this makes things much more complicated and severely limits your ability to limit your liabilities.

Not only do they lose the retirement balance, but also they incur a 10% premature withdrawal penalty.  

If this is a bonus that's coming soon, the timing could really limit the number of moves you can realistically make between now and Dec 31st to mitigate taxes.