As long  the tenants pay the rent each month, increasing their rent will be very tough and getting them to leave will be extremely tough. 

If I leave this amount in Sch-E, I get taxed at ordinary income tax rate at Federal and State level, which along with my regular W2 income can be substantial.

It is right on the fringe of being legal/illegal, and lawmakers have been talking about how to regulate it for years because it can be a dangerous process that leaves end Buyers feeling like they weren't represented.....especially when they see the closing statement and find out how much the wholesaler made just by getting to the Seller first. 

If you are single or a couple on the same page about house hacking, look for uneven multis.

Borrowing against your paid off house without an income puts way too much pressure on the success of whatever deal/project you decide to pursue. 

With rent control in NJ, yeah, it’s mostly a waiting game if tenants don’t leave.

So, what does this leave the part time investor?  

I have done it successfully on my last 2 buildouts, maybe 3, but only because I was able to acquire the properties at a very low price and I did all the work in-house (myself and some hired hands on staff).

Hey@Adrian Sopher Is your mom's house in Nashville?

It seems a shame to leave it there empty.