Plus with no state income tax, cheap insurance, and very low property taxes, I’m probably starting $20k ahead of most people, and that’s a tax free $20k.).

Don’t want to pay taxes on the capital gain.

DSCR lenders are much more flexible with income requirements and don’t require W-2s or tax returns.I’d be happy to connect and chat more if you’re interested!

If you live in a state with its own income tax, you might be allowed to credit your Illinois tax against your own state’s income tax.

Focus on cities with favorable price-to-rent ratios, population growth, and employment trends, such as Des Moines, Oklahoma City, and Charlotte, while considering factors like landlord-friendliness and property taxes.

That's 50k a year gone and you are losing tax write-offs and equity potential.

Let's assume your expenses (mortgage, taxes, insurance, maintenance, vacancy, etc.) comes to a clean $600 and the property rents for $1,000.

As someone mentioned, the only thing passive about real estate investing is the tax treatment. 

Maintain - includes taxes and insurance?

If you were able to increase the value of the property significantly after the rehab, then you could bring the deal to a community bank  to refinance and take the hard money lender out.You keep all the equity and don’t have to file a partnership return for your annual tax return, which can be costly.