As you note, I think this is the slightly higher risk play, but ultimately can lead to MUCH higher overall returns. 

I also said it would end up being a big mess and ultimately would hurt the very people they claimed it would benefit.

The ultimate tax-free transfer would be to inherit the property at a stepped-up basis.  

Ultimately though, I invest for cash flow.

They are all paid for already.I think he is referring to a HELOC, but ultimately it is a way to avoid or defer capital gains taxes as the interest rate on the HELOC would be lower than your capital gains tax.

Let me provide some context to help you understand my situation.My GoalMy ultimate goal has always been to generate passive income through rental properties. 

Check with CPA but furniture has its own depreciation schedule (7 years I believe).Ultimately I would check with your CPA to see if it is even worthwhile, and your lender to see if it is even possible.  

Those policies penalize all future prospective tenants in those markets, and while landlords complain, ultimately accrete value to the landlord at the overall expense of the city's potential.

I hope you get more feedback and ultimately find a market that suits your investment needs! 

My gf and I have a household w2 income of 170,000, before my income from my rental property My ultimate question is what should I do.