The 8825 will be the bulk of what generates the K-1 that passes through to your 1040.I've been filing my own LLC returns for 11 years and have never done a Sch E with those assets.  

I am licensed real estate agent but concentrated on investing and building a lead generation business.

A good starting point could be purchasing a duplex or a small multi-unit property to generate rental income either by living in one unit or by hiring a property manager.

So would i structure how long and how often like " property generates X per month, monthly payment to be 50% of X for however long it takes to pay it off (would calculate)?

of course not all section 8 folks are like that but there is a HUGE amount that are and it is simply generational. 

Currently, the property is performing well, generating consistent cash flow.

But the potential upside of the more expensive building is massive, plus you get a higher overall ROI when you factor in all 4 wealth generators (cash flow, loan paydown, appreciation, depreciation).

We are already a fortunately high net worth family. however, that is from my spouses W2 income, so at this stage we don’t really have anything tangible to “leave behind” and we want to try to build generational wealth for our child. 

That will generate for you your own list of possible wholesale deals that you can close on from the bottom floor. 

I think overall, this current generation of homebuyers is very savvy.