I would consider investing in stocks and index funds to be passive.

We buy stock material and cut it to size on the job.

He’s interested in stocks, bonds and the financial markets.

To me, any liquidity qualifies: bank letters, bank statements, stocks in an investment account that covers down payment, etc.Today, I got a letter from a hard money lender saying the buyer is approved for 1/2 the listing price of the property.

It's similar to buying a stock with no dividend.

If you truly want to protect yourself against STR regulations and ensure the value of what you purchase can be transferred (this last part is important) only buy where these three principles apply: (1) the use is allowed, (2) the use requirements are protected by in place permitting and licensing and (3) the permissions are transferable through a sale.

I love to see the debt lowered every month with principle payments.

I have moved away from my W2 job and living off of investment income (rental + stock portfolio).

I'm borrowing at the rate of ~7% and 7% is a great return to me, especially with the stock market near all time highs. 

I'm thinking I should sell and reserve those funds for investments in stocks or even gold or a small business I can buy.