RE Pro Status supercharges this.If you or your spouse are an RE Pro, your LP investments can lead to depreciation offsetting both passive and active income.If you are not an RE Pro, the losses due to depreciation can only be used to offset passive income—such as income from other rental properties or other passive investments.

I realized that this isn't "passive" at all and success can be the difference in knowing what's going on and being aloof.

And it always takes a little longer and costs a little more...The more properties you have in a small area the better you can focus and gain operational efficiencies.

Looking to replace ordinary active income completely with passive income as quickly as possible while managing risk.Rob

After enough time, equity gains and income gains are huge compared to when you purchased.

My goal is to create passive income and then eventually turn this into a full time job for myself.

If you're like, "no, I just want the passive income" then as others suggested there's other ways to invest in the asset class of real estate that are truly passive (REITs, syndications, the latter of which I also invest in). 

So again, I think that comes down to, are you all prepared to make that balloon payment, can you hold on and get to where you have "passive" income coming in from the STR, or do you want to get in and out quickly to make a good chunk of change. 

You do get a small boost on most booking platforms right when you list, but overall it takes time to gain traction and perfect your pricing strategy.

Now I am trying to decide to sell (take the long term cap gains hit) versus a 1031 exchange (never done one) or just relist it.