They will likely have the ability to generate them.Disclaimer: While I’m a licensed attorney, I’m not your attorney.

The answer is to value this as any other business generating income, not just stick within the confined box of valuing the real estate only.  

We are not looking to conquer real estate but just start generating some passive income I hope this finds you all well.

Contributing to a Solo 401(k) or SEP-IRA can reduce taxable income, and Section 179 or bonus depreciation lets you deduct equipment costs upfront.

I'd also advise out of state since you can certainly generate better cash flow too. 

If you love property management and want to start a business keep looking into it.Otherwise keep buying income producing properties to generate wealth.

Currently still favor the house rental for MTR and long term strategy in ABQ, but I don't think you generate any solid cash flow unless you can get a turnkey 2BR for under $250K.

Selling and exploring a 1031 exchange could make sense if you can find a deal with stronger cash flow or faster equity growth, but the key is comparing your current return to what your skill and experience could generate in another investment.Here to help,Jorge

And, if you were able to generate $500/mo cash flow as Scott suggests, his method would not replace your income: if you could do only 3 properties a year that would net $1500/mo cash flow and it would take you 10 years to scale it to $15000/mo.

I prioritize appreciation, tax benefits (rental property expenses, depreciation), ability to use leverage, and passing on generational wealth with real estate.