I know some zoning codes don't make a distinction between the two which is a bit unfortunate.

@Linda Weygant @Kevin Coggins  when he mentions negative gearing that is a distinctly Australian term.. for whatever its worth you will not hear US investors mention that or even know what it means. internet is a wild thing.. when you can create all these persona's.

There is some value in placing each property in a distinct entity.

I think you have two very distinct things going on here.. you have folks that have no real formal real estate training and they are simply investing in rentals.. and then someone like me who is in the business owned real estate companies owned mortgage companies own's a building company .. and HML company.. all related to real estate but not one dime comes from rental income..

Today, it isn't as much anymore because Salaries have stagnated for about 30 or so years, especially if you look at Buying Power over the 3 decades.I want to make a distinction between PAID education and FREE education (or almost free).

Note there is a subtle distinction there in the sense that she enjoys mostly what she does, so she hustles, whereas my grind is a means to an end.

But I make sure people understand the distinction between a Buyer Agent and a Facilitator when I first meet them, in terms of service and compensation; I tell them not to hire me until we've gone to see a few properties and they decide if they like and trust me; and I give them a service guarantee that says if they aren't happy with me at any time, they can fire me.I understand the investor mentality that "whoever brings me the deals is who I work with," but are you really better off working with and paying a great Buyer Agent than hoping a herd of mediocre agents will lay dead mice at your feet? 

., here at home there is a distinction between leasing a property with an option to purchase and a scheduled/deferred purchase programme and you want to be certain you do not inadvertently mix the two.

The valuation and market value of a multi family property differs from a single family and you want someone that understands the distinctions if you go that route.

The world need me to be clear about that distinction.