When I go to get a loan or refinance, a bank will see that I have been producing this rental income for several years and that it is part of my overall income, which makes them more likely to work with me on financing a new rental property by counting 75% of the potential rental income into their calculations.

If the Sponsor is using a firm to produce the PPM, that firm should have completed at least several hundred PPMs in the field with a perfect track record of success (i.e. no SEC claims.)

I find at least in my area it usually doesn't produce quality leads that have stable income and clean eviction record.2) I pay particular attention to market rents and what mine is.

Yard signs still produce the most leads for us.

DSTs like @Matt K. indicated are one such product that is passive cash producing and 1031 compliant. 

Being a Realtor is one of the most profitable real estate businesses you can run if you are a top producer.

Assuming the same expense ratio as the other property (about 42%), your $168k gross produces an NOI of roughly $97,500.

Couple scenarios to illustrate:Scenario 1: Let's say both deals create $10k in equity and produce +$400/mo in cash flow. 

I think the above would still be your best bet minus the house hacking - IE: find a place that is best set up to produce income, but also has substantial opportunity for improvement.Just my 2 cents.

Secondly, if you're buying an income producing property in Alabama in an LLC, it's undoubtedly going to need to be registered in Alabama.