Consult a CPA or real estate attorney to understand tax implications, build a reserve fund for unexpected costs, and research local regulations to ensure a smooth and profitable transition into rental property ownership.Good luck!

Since you're using an FHA 203k loan and house hacking, focus on managing renovations efficiently to avoid delays and unexpected costs.

Have realistic expectations and create a buffer for unexpected costs.

And it's pretty much impossible to find a passive investment for that (and can only be done directly).

So you can sleep at night, consider having at least 2-4 month mortgage payments, taxes & insurance set  aside (in the event you unexpectedly have difficultly in the future finding the right tenant.)3.

You'll pay a higher rate and may need to have more of your own money in the deal in case of unexpected repairs. 

Dave Van Horn is a collegue of mine and I am glad that he was able to point you in a direction that helped you feel better about your retirement planning. 

If a large repair or tax/insurance hike were to happen with a multi-unit than you at least have other units cash flowing (usually) which helps stabilize such unexpected costs. 

Despite facing an unexpected $30K appraisal gap.

Otherwise, it’s treated as a partnership requiring Form 1065.Get an EIN (Employer Identification Number) from the IRS (free) for tax and banking purposes.Separate personal and business finances by opening an LLC bank account and keeping rental income/expenses distinct.Consider an operating agreement, even if not required by state law, to define ownership and responsibilities.Liability protection: An LLC helps shield personal assets, but you may still need landlord insurance and an umbrella policy to cover lawsuits and unexpected claims.Tax strategy: Rental income typically passes through to your personal return (Schedule E).