This enrichens the criminal investor by taking advantage of everyone who pays to have these regulated apts, such as the Tax payers in NYC.That's my opinion as a NYC Real Estate Investor and Broker. 

In other words 30 year fixed rate mortgages are subsidized by the tax payer.  

1: They take any random person just to fill the place. 2: They lack the understanding for the reserves needed for repairs, tax payments, etc. 3: They think renting out a home is the golden path to early retirement while not realizing there are many months that you are likely to lose money, not make money. 4: Cash flow is lower on home rentals than newbies realize. 5: They think they can just sell it and buy another new home if things go wrong. 6: When things go wrong they become weak minded and give up. 7: They have good success with their first rental and think they are smarter than everyone else and this will be easy for them (not true as there will be some major flops). 

All taxpayers are required to pay taxes on the fair market value of property or services received through barter.

It’s a taxpayer friendly code if planned properly.

@Myles MacMillanThe private mortgage insurers were given charters to take some of the load/risk away from the taxpayer.  

The exception is a small taxpayer exclusion- if your and your wife's Modified AGI on your 1040 is under $100k then you're allowed to utilize your passive losses against other active/ordinary income on your 1040.

There is no provision of the tax code that allows a taxpayer to not "show" income in order to avoid paying taxes, and indeed the tax code contains like 10 different options for us self employed persons to "show" it however we want...

@Matt Ferch Just because it’s coming out of your (after tax)  pay check doesn’t mean it’s not defuctable as a business expense.

In order for your 1031 to be valid the taxpayer for the old property must be the same as the tax payer for the new property.