Appliances - 10ish years (and if STR, likely want trendy styles that may be more frequently replaced) $10k+ - $83/mo.You can then get into things like blinds, exterior and interior repaints, tuck pointing for brick, decks/patios, fences, carpet/hardwood refinishing, garage door openers, etc.  

That option is obviously the most out-of-the-ordinary, and I am curious about why that is, since it does make better sense to me on paper than #2.

So 50% and 25% is not out of the ordinary.

If they seller finance it they can defer some taxes but the interest payments are taxed at ordinary income rates once you hit your basis everything from their is also ordinary incomeNo real way to avoid Uncle Sam.If the property was in a living trust and that person was going to get the house, then there is that option but it’s little more complex and need to speak to your cpa and attorney

That 20K is ordinary income, taxed at the highest rate.

I placed one under my patio, where there isn't easy access to power, but where I know the noise will cause problems for neighbors.

However, I would be careful with the proposed tax hike.He will pay capital gain, not ordinary gain The gain that he will recognize with each year’s payments would be the recapture first.

So I have an acquaintance that has a substantial amount of real estate (managed by a property manager), and they have a lot of ordinary income from various sources, resulting in a high income tax each year.

Find unique units which means either small buildings or units with a particularly unique feature like a huge private patio, exclusive rooftop access, etc.

W2s are Active/Ordinary income.