That almost defeats the purpose of trying to attain wealth.Regarding having a small business, you may be eligible for different types of retirement accounts, deductibility of health insurance and other things.New Jersey also has a complex tax system - It may be worth while to work with a CPA in the tri-state area.

If they are treating the rental income as a qualified trade or business for purposes of the qualified business income deduction (QBID) on your federal return then it definitely IS subject to the KC income tax."

If, in principle, I can make it so that I have extra income left over after deducting all expenses, I have a positive cash flow.

Are mortgage points paid on a rental property deductible the year the property was purchased, or do they have to be depreciated over the life of the loan?

Paying zero tax is inefficient in it of itself--- unless it was for the rest of my life or something...Making use of the lower/lowest tax brackets and the standard deduction (being so massive nowadays) is a huge tax break in it of itself.As mentioned, you only drive one's taxes higher (and/or higher tax brackets) in future years, especially with using up the depreciation faster. 

A cost segregation study may allow you to deduct $150k in depreciation expense in the tax year of acquisition.This would create a large tax loss (notably different than an actual operating loss).

That's long term renting 101 to me.Also, the "tax benefits" of RE is just to let you deduct your expenses. 

Your mortgage will give you deductions, but once you start investing in property you will also have greater deductions.  

That is the norm and what a cash buyer will expect from a wholesale deal.Next you deduct the cost of the repairs that need to be done to the property.

If you have equity in the property you need to deduct a 10% return off the top of the rent as a additional expense otherwise the equity is being wasted.