@Christian LicataRenting property provides steady passive income, long-term wealth building, and tax advantages, but may be low initially due to mortgage payments and maintenance.

Unless the numbers are too tight.Although if the Cap Gains goes up to 45% or something, that would change things a lot.....

Loans typically get paid back on a refinance or buy out period but if the property fails to gain enough equity within that period of time it can be a lost deal and painful.I would advise you to look into traditional or Non/QM financing where you use your credit score or income to buy the home.

I understand there are cons to partnerships, but there are also pros, and given your question, it sounds like you may be fairly new-ish to real estate finance, and the various ways that people get deals done.Partners can come in two forms: active and passive.  

I will follow your advice so I can gain more insight. 

I am considering Nevada, Washington and North Carolina.It does seem that foreclosures may be better to pursue once I gain more experience.  

So you end up missing out on the equity appreciation by waiting as well which is the main goal aside from passive income.

I was thinking my capital gain would only be 15k.

asset worksheets for each depreciable item - between 3 and 30+ pagessupporting statements for line items - between 1 and 10 pagesautomobile expenses worksheet - between 2 and 8 pagesForm 1098 worksheet(s) - between 1 and 4 pages per mortgagestate-specific worksheets, MAGI worksheets, passive losses worksheets, and a whole lot moreBy the way, including these extra worksheets will not create more work for me, they are already inside my tax software. 

 - residential RE is not passive even with the use of a pm.