It is a decent area but watch out in Pittsburgh, some roads can be slums and the next road is for royalty. 

Theres also a royalty program for bringing other KW agents into the fold, you get paid every time they get a commission, it would take an in depth explanation.

If that is the case, then mortgage interest on a note is passive and not subject to UBIT.UBIT applies when a tax-exempt entity engages in a trade or business on a regular or repeated basis.Passive income not subject to UBIT includes royalties, dividends, interest, rent from real property and gains on the sale of an asset that has been held to produce such passive income.Trade or business subject to UBIT generally consists of services or buy/sell transactions. 

@Damien L. if you don't want to create a new business entity yet then you can appropriately track your income and expenses and then use Schedule E on your regular 1040 tax form.FROM IRS.GOV WEBSITE:Use Schedule E (Form 1040) to report income or loss from rental real estate, royalties, partnerships, S corporations, estates, trusts, and residual interests in REMICs.

If you are an independent contractor with multiple years operating in your business and reasonable consistency in that income (you don't have one year with $30K and one year with $200K and are trying to claim you make $200K) then you need to keep calling lenders until you get one who can work with you, in my opinion.If my real estate side business and my book royalties from Set for Life (next year) can help me qualify for a loan, in addition to my W2 income, then I don't see why someone with consistent income from self-employment is having trouble -- perhaps the trouble is more in demonstrating consistent income from a sustainable source? 

EXEMPTIONS Real Property - The sale, lease or rental of real estate (land, houses, buildings and other structures attached to the land) to the same person or occupant for thirty or more consecutive days.Intangible Property - Sales of intangibles (copyrights, royalties, notes, bonds, etc.)."

The escrow company can also manage disbursements, pay out royalties, etc .

Many alternatives exist (interest from savings accounts and bonds, dividends from publicly-traded and privately-owned businesses, rents from real estate, royalties from intellectual property).

When you do your schedule E (rents and royalties), after all deductions, mileage, depreciation, you should be a few thousand negative.

You should keep track of income and expenses to put together a profit and loss statement, which will ultimately go onto the schedule E (rents and royalty).