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.  

The real goal is capital gain, and future cash out refinance.

At 40% down if I wanna make the passive income.

The latest QCEW showed that the job gains previously reported by the BLS between March 2023 and March 2024 had been revised lower by 818,000!

When house -hacking with 5% down, returns on cash invested could be huge when you factor in the appreciation gains.