The property was rented and generated $160 cash flow after mortgage, taxes, insurance and property management fees were paid.

However, before you do so you should ensure that your revenue from rental income covers ALL your property expenses in the townhome, including mortgage, taxes, insurance, maintenance/repairs, vacancy, property management, etc...

Hi Everyone,I  am a professional wholesaler and property locator, I locate property on/off market, do a full due diligence on title, encumbrances, taxes ect...

You also don't have to pay state tax on income. 

We have sold (tax free), kept as long term and/or short term rentals as well.

Overall, the tax benefits and appreciation alone keep me interested in staying with it more than the cash flow itself. 

An annual business tax as a hotel of $50 and collection and remittance of transient occupancy tax of 12% from renters is required of all short-term vacation rental operators.

If you continue filing taxes jointly the income you realize from your separate property will still need to be explained and redacted, regardless of the type of entity holding the real estate.

If you’re interested in investing in real estate, you can consider doing so with a Self-Directed IRA to defer taxes on capital gains until you actually withdraw the funds from your IRA.

One caution when using crypto to acquire property is being aware the tax ramifications are identical to if you converted to cash first.