Is it true that u can only claim up to $25k on 1040 Schedule E (Supplemental Income and Loss)??

Now i do plan to live in this property so of course the first goal is to supplement my mortgage payments, gain some equity and experience. 

Investors use wholesale deals to supplement income and build contacts.

The business brings in the bulk of income and then the properties  supplement it a little but nothing crazy .

Keep your present home if you wish but be prepared to supplement your tenants rent.

But after spending some time doing some research I've found that doing a partnership agreement along with having an umbrella insurance policy could possibly be less expensive to get started.I also feel it would cause less initial headaches than trying to figure out how to structure the entity, we're both doing long distance investing across states and we both live in different states from one another.For our first property and subsequent properties each would be in one of our names and my basic understanding is that both of us would report rental income and expenses on Schedule E, Supplemental Income and Loss.

@Eury Almonte 1. flip houses if you want to replace your current 9-5. flipping is a job. this is what i did. 2. get rental properties if you want to supplement your income w/ some residual income and grow your networth. 

That being the case, the scenario I described above no longer makes sense and I'm turning my focus towards maximizing the current property as a rental unit, either as-is or via a renovation/re-build where we can incorporate supplemental units like in-law suites or extensions. 

We started real estate investing last year as a means to supplement our income and eventually allow ourselves to be in full-time business for ourselves.

I do not want to fall behind market rents, I want to contribute to setting market rents and I do not want to turn my business into a charity by supplementing tenants rent.