It must cash flow for it to be sustainable and revalued higher for equity extraction (appreciation play).

You can have a tool that monitors the same data sources as you do today, but use the newest techniques in engineering to automatically extract names, addresses and cross reference that information with county databases before streaming that information to your CRM. 

Essentially, we extracted the ADR and occupancy rates to see the variations between potential revenue based on how many guests are able to stay at the properties.The goal is to shed some light on the different levels of demand depending on the # of guests allowed as well as to see which months attract the highest demand (hint: it's March, April & October).

Most of mine have infinite ROI, but I have 3 that for various reasons were not  refinanced to extract my investment (one had no value add, the other 2 have not been refinanced to extract the over $1m value increase due to rate increases). 

You could do a 1031 into a DST, thats entirely passive.If you extract 10M equity equity and invest conservativley with a 5 CAP thats $500,000k a year in todays money.

In this situation you can't just form a sole prop or DRE property management company with the goal of reporting the management fees extracted from the rentals on Schedule C. 

If the rental income significantly exceeds the normal write-offs (standard expenses plus standard depreciation) then there are options including extracting value via a refinance (reduces the cash flow), do a brrrr or other costly value add, or do cost segregation.  

The impression I got is that they just want to extract from you and not give you anything of real substance in return so Danger Will , Danger will.  

House hacking a FHA duplex with high LTV, off market purchases, a BRRRR that allows you to extract all or virtually all of you investment, lease to own, etc.  

Not only could it save your skin, but also dissuade stupid lawsuits because you would be too hard to extract money from.