Be careful when you select entity types.A pass-through entity in the United States, such as an LLC, may not hold the same characteristics in Canada.What market are you looking to invest in?

@Shayan SameerThe non-paying tenant could impact your short-term cash flow, so consider the potential costs and timeline of eviction in your state.

But I don't think I fully understand the law surrounding this and the actual ways it should be used.As I understand it, this is what you could do with such a clause if you are buying a property and the seller is financing it to you:As an example using easy numbers, you could buy a property through seller financing for a price of $100,000.

I will still use alt. lenders from time to time depending on the circumstances but I will also achieve similar LTC financing through traditional banks and when I go to my capital partners with a term sheet for 85% LTC through a traditional bank with a fully capitalized interest reserve, healthy contingency funds and soft costs built in and the real estate great, its far easier to raise capital because far less equity is required to fund the deal but this all starts with the quality of the real estate.

Are you cash flowing the property?

For investors, would earning passive income through property cash flow (without actually owning the property) be appealing?

I ran your numbers through my own development proforma analyzer and it looks really good as a DSCR loan. 

The $1,500 net cash flow you mentioned represents a tightened rental return that could provide consistent passive income.

But if your goal is to leave your day job soon, multi family will offer more cash flow typically.

If that's the case, I would likely hold the property without pulling money out and break even or cash flow a little.