He is very good about deductions on tax returns so his income looks negligible and of course banks wont talk to him about loans.

So, in your considerations, I would park right there for a bit and determine how this would look for you.Since you have about 2.5 years to think about it before you would need to spring into action to take advantage of the rollover for tax advantages, maybe you try on a rental and see how it fits. 

They're highly popular for turnkey rental properties because qualification is primarily based on the income generated by the property itself rather than the borrower.

We do not verify income. 

They remit the taxes.

We will both keep our W2 employment for the near future just looking into getting an extra income or make our retirement easier.

Note - if you live in your property for 2 years out of the last 5, then you don’t pay taxes on the profit. 

My other SFR notes have interest rates determined by the borrower's cash, credit score and income - so market rates or higher.I understand the difference in performing vs non-performing notes and that performing can become non-performing pretty easily. 

Can provide all the benefits from a cash flow and tax perspective.

Thats $7700 a year NOT including my accountant/Tax prep.