To go a bit further into what Dmitriy mentioned, since your IRA earns the income the tax treatment is specific to your IRA.

We invest in 8 states currently. 

And for any who question how legit my info is on sec8 Payment Standards, here ya-go, the current 2024 rates in this area.

Sterling,Each lender is different on how they calculate income and also what overlays they have that can cause a bad income calc. 

K1s show your share of income or losses from the partnership, and you include it on your respective personal tax returns.Now, to your partners.

Sometimes, there is also a tenant already in place which means you can start generating rental income from day one.

Just focusing on the passive income you want to achieve will leave you chasing cash flow which will have you buying properties in worse areas with harder tenancies that seem to cash flow better, but will have large cap ex.Any time someone asks a question about where to invest and it can be anywhere, they aren't ready to invest and are opening themselves up to every pitch in the world on an area.

Rental gives $500 monthly income from $2,000 rent.

Quote from @Erick Pena: A "good" rental property is one that covers all expenses (mortgage, taxes, insurance, maintenance, property management fees, and any other costs) and still leave a surplus (commonly referred to as cash flow).Calculate cash flow as: Cash Flow = Rental Income − Operating Expenses − DebtThere's much more to it, but that's the basic idea.

So far, I've read The Millionaire Real Estate Investor and I'm currently reading The Book on Rental Property Investing by Brandon Turner.