The amount will be $2,507 every month ($30,084 every year).

If I leave this amount in Sch-E, I get taxed at ordinary income tax rate at Federal and State level, which along with my regular W2 income can be substantial.

Paying a reasonable amount to assist in one's life improvement is not a bad thing, just don't do nothing else thinking this one thing is the 'cats pajamas' as DG likes to say.

@Hank Bank BRRRR is probably want you want to do.Buy, Renovate, Rent, Refi, Repeat.Before you go all in and either find out you don't like being a landlord or you make costly mistakes, start with just the next one.You'll have some challenges with tapping the equity in the townhouse:1) What loan amount can you qualify with your credit & income?

You can also assess a dollar amount that you value the cost of these requests to be, and ask for these as a discount from the purchase price or a concession to you for closing costs. 

You can simply request a separate check for the $100 increase to bring the total deposit in line with the new rent amount.

Yes if you hold it long term (really long term), you may get back the same amount that you would have received by not paying capital gains, but you have to hold it long term AND have the house appreciate. 

Thus, when a foreclosure sale is held, you can set the bid amount up to the amount of the total debt, which would likely increase from 80K to include the legal fees, receivership costs(we suggest 5 - 10% of the rents collected), repair costs, additional accrued interest, minus rents collected.

They could self manage for several years, using the rental income, until the next phase of their retirement.If they have a decent amount of financial discipline, they may want to get a HELOC now before they build to get the most favorable rate.

RAD buys them back at a “discount” of up to 4%, according to the circular.RAD also caps the amount of stock it will buy back from investors at 10% or less of all the shares it has outstanding, and investors can only sell 25% of their stock at a time, although the company said in another filing that it “routinely” allows investors to cash out all their holdings despite that provision.Or the company could decide not to buy back any stock at all.