Be careful to establish a price per sq ft that was derived from similar properties, definitely not the price per sq ft from the regional data, and even then it's still just a ballpark indicator, as all property is unique in its own way, and will have elements of value that are not related to the size of the home.

The term passive income is from the US tax code and in no way related to how you derive income or earnings from RE.

Each property in my portfolio is owned by a separate LLC which are derivatives of a master, ie: LLC1, LLC2, and so on. 

So income derived from the loan should be counted as income on his tax returns, etc. 

The Court rejected the IRS's contention that this case was different and the rental was not a trade or business because (a) the acquisition of the property was involuntary, (b) the operation of the property was not intended to be of long duration, (c) only a small part of decedent's income was derived from the rental of real estate, and (d) the net result of the operation of the particular rental properties was a loss.• Lagreide was a case involving a net operating loss carryback and recomputation of the correct net operating loss.

If historical data has any value to you, I think you could derive a conclusion that says that price appreciation is going to continue.

Finally, since beta and Monte Carlo derive a lot of their parameters from historical data, how have you over come the black swan problem in your modeling? 

Those are the 3 ways an appraiser would derive a value estimate, applying weights to each method. 

That said, cash flow is only one of several income streams that may be derived from a buy and hold.

The base plane is derived from the spot elevations at the front setback.