@Weston Couch - I do have an LLC set up for the rental properties.

I consider myself a long-time REI enthusiast who finally got the drive to get off the couch, commit to the business, and take some action. 

If I misstate something or don't couch the statement in softer terms, I apologize ahead of time. 

The room might be able to support 5-6 on a couch and 3 more on bean bags.

My favorite was the time an inspection passed except for the fact that the tenant was dirty and had a bunch of clothes on their couch. 

Also, consider putting a pull-out couch in the main living area - and include the couch mattresses that are now available that make this a lump-less sleeping option. 

Some would say stocks are risky as well but if you look at things like index funds over 20 to 30 years; a 7-10% annual return for sitting on your couch certainly has me second guessing how much I would like to pour into real estate investing.In conclusion it seems that real esate investing is a great way to become financially free if you want to quit your day job with a lot of leg work (aka a second career), or a great idea for someone who is business savy already and has the capital to start an additional business.  

Rents range from $325-465/month (crazy variation, I know....)Here are the numbers from Sch E for 2016rents: $73,990cleaning: $510insurance: $4,868repairs: $1,364supplies: $3,770  (the current landlord keeps a room in the basement filled with couches, beds, end tables, etc, that he allows tenants to pick from if they need such things, so I suspect this is part of this number)taxes: $3,784util: $10,844Additional benefits to this property are: good location for the type of apartments; all brick building; new roof within last few years; had a fire in one unit several years ago, so all units were re-done and brought up to code by the insurance company.

Do stand up for 10 months, drive an hour for open mics 4 nights a week where you MIGHT get 5 minutes to work your craft, practice every night and turn down friends to go out  partying and improve but see that you will need do this for years longer before making headway due to only being given 5 minutes a night to do your craft in front of an audience.

If most of the "work" can be done from my couch on a phone, that's pretty passive to me.I get that some people choose to do much of the work themselves (PM, handyman, etc), and that will make it less passive.