I used my tenant income and w2 income to put towards the next phase of rehab.

You also don't have to pay state tax on income. 

You have come to the right place to explore different ways to generate passive income.

He calls and tells me "the income to mortgage isn't 1:1 and he is going to have to let the lender know."

Kudos to you for doing something to create a secondary income stream. there are 5 income streams in RE rentals, possibly six if you do things a certain way.The reality here is your model (buy box) is suffering from too high an entry and too high a cost of capital.

To collect all rents and other income from the Property and promptly and directly deposit suchrents in XXXX's Pooled Trust Account.3. 

Another option is investing in real estate through partnerships or fractional ownership, focusing on properties that yield cash flow or appreciation potential.For long-term growth, consider diversifying into assets such as private equity, tax liens, or even certain types of real estate that offer both capital appreciation and income potential over time.

Not disputing your experience and I'm sure your agent is great.However, the Goosehead model is designed for the local agent to sell and the corporation to service.

I don't know what they tell you in CA but here in NY we are suppose to reject any sort of income during the time of the eviction.

If your goal is passive income, it's not going to be in New Jersey when you factor in cost to purchase, management costs, and rent to price ratio, but what you can get is steady appreciation.