(c) A water supply approved under applicable law, which is:(1) Under the control of the tenant or landlord and is capable of producing hot and cold running water;(2) Furnished to appropriate fixtures; and(3) Connected to a sewage disposal system approved under applicable law and maintained in good working order to the extent that the system can be controlled by the landlord.

Clean water and local produce. 

Our first went better than expected, currently producing $1100/month net cash flow, around $50k equity upon stabilizing.

So now i would have an income producing property owned outright worth 30k.

I wouldn’t waste my time on anything that doesn’t produce atleast 2% .

The idea is that over a long hold period, your expenses on an investment property if you track them very well will tend to gravitate to about 50% of the income it produces. 

Im looking for a single family home in houston texas that could produce passive income.

There is no deals in Hawaii that produce cashflow.

Then it produced a materials list of their windows, doors etc etc that they already had & pricing.

For example, a vacation condo rental that is treated as a trade or business for passive activity purposes solely because the average rental period is seven days or less is still a real estate rental exempt from the self-employment tax.Per Reg 1.1402(a) - 4(c)(2)- If only services provided in connection with 7 days or less or 30 days or less are beyond customarily provided in connection with the rental of the room or other space the activity produces SE income, if not, NO SE taxes.