Since RE has many ways to produce value it also has many ways to extract value and when working into retirement that is something you should start focusing on.But do what is best for you.

Typically a 10/90 with an escalating promote doesn't work well for the active partner once the majority of the value has been extracted from the property. 

Historically the Oakland market has had good appreciation and investors often refinance in less than 5 years to extract equity. 

However if I do a BRRRR I can achieve infinite return by extracting all of my investment.

In those cases, we raise cash to complete the project, get it fully rented, and the refinance to extract all or most of the investment cash. 

These laws dont affect non owner or second homes so C'est la vie when it comes to those.most HELOC and lenders on primary residences will either limit cash out refinances on TX primary homesteads or limit it to 80% to comply with 50a6.Plan Accordingly and you can still get / extract your equity out from your primary residence in TX state.

Don't fall for the pump and dump of buying a C-class asset from someone only for them to disappear as soon as they have extracted their value from you. 

However if I do a BRRRR I can achieve infinite return by extracting all of my investment.

The oil fields and pipelines and refineries have the extraction and distribution capacity to deliver products (oil and natural gas) that are and will continue to be in demand.

I do not consider owning residential RE to be passive but can produce great ROI (we historically achieved the infinite ROI because we extracted all of our investment).