For quick math I have a range of each between: 700/yr to 3% of gross income

Like someone else said, some income is better than no income for many people.

Previously I'd always used Stessa, which has a great Net Cash Flow statement view, breaking down the usual income/expenses, but also includes a section for Interest/Principal, and another section for CapEx. 

It's seen quite a bit of growth and development, the income is also high around that area. 

Otherwise, it’s treated as a partnership requiring Form 1065.Get an EIN (Employer Identification Number) from the IRS (free) for tax and banking purposes.Separate personal and business finances by opening an LLC bank account and keeping rental income/expenses distinct.Consider an operating agreement, even if not required by state law, to define ownership and responsibilities.Liability protection: An LLC helps shield personal assets, but you may still need landlord insurance and an umbrella policy to cover lawsuits and unexpected claims.Tax strategy: Rental income typically passes through to your personal return (Schedule E).

Our plan is to use the "Sneaky tactic" and for the next few years, the plan is to buy a house that needs a little TLC, fix it up as we live in it and move on to buy another house until were tired of doing it or reach a decent income.

Wife and I are both self-employed so acquiring a traditional mortgage is challenging based on our "on paper" income.

As there are Californians still moving here, the vast majority are instead picking the states with low or no state income tax like Texas, Florida, or Tennessee.Although we still have a positive influx of people moving here, more people have been leaving due to rising housing costs in recent years.To put it in perspective, we saw around +45k in the 2010's.Overall, CO is basically a balanced net migration in recent years which is likely to keep home prices steady....

And as time goes by, rents will increase and your income will look better and better.My first investment in 2004 made $35 more than the mortgage.

The IRS has a guide on rental income and deductions that might help: IRS Rental Property Tax Guide.2.