Rental real estate is not subject to SE taxes unless (1) the taxpayer is a dealer and the property is used in the taxpayer's ordinary trade or business as a dealer, (2) the taxpayer is renting out farmland under very specific fact patterns, (3) hotel-like services are provided with the rental, or (4) the taxpayer is renting space in parking lots, warehouses, or storage units. 

I always do sliding patio doors which I get from Window World.

Because you can leave more money inside the 1031 where it will stay tax deferred.and the 3rd option (just because I'm a Goldilocks guy) is to not take a commission (you don't pay ordinary income tax). 

Other than that, the duplex is spacious, modern, has covered front porches, small back patios and 248 sq.ft. 1-car attached garages. 

Although no single factor is determinative, the combination of several factors supporting a particular result is sufficient for a court to decide whether a taxpayer held property for sale to customers in the ordinary course of a trade or business.

So $500/month is not out of the ordinary here.

No guarantees here, what if you get pigeon holed into a very ordinary strategy?

I mean it is disqualified from the tax treatment** You can borrow money and use it to buy things inside of an IRA, but it makes the income derived from said activities subject to immediate taxation at your ordinary income tax rate.

I've seen many garage conversions where having that big roll up door (depending on the style) is actually a bonus because it can open up the living space to a patio or yard and people like that indoor/outdoor feel, especially in So Cal.

@Andrew AngellIt’s taxed as ordinary income unless you are a c Corp and paying corporate tax rates firstNot a cpa but this is my experience (which is why it’s typically better returns long term to invest in a fund that can provide better returns and diversity)