And as time goes by, rents will increase and your income will look better and better.My first investment in 2004 made $35 more than the mortgage.

Hey @Scott Trench unfortunately real estate losses (active or passive) will not offset portfolio income from stock sale gains. 

When I did my first house hack in Columbus I showed very low income on taxes. 

Take your sales price, minus selling costs, minus any capex, minus purchase price and that’s your taxable gain.

If your new LLC is a disregarded entity (single-member or owned solely by you and your spouse in a community property state), it won’t trigger a taxable event, and you’ll continue reporting income on your personal return.

Diversification into multifamily also lowers risk compared to a single rental, as vacancies won’t affect your income as drastically.3.

Normally this would be taxable. 

If you have your mom live there without any rental income, it is not considered held for investment but is rather held as a second home and does not qualify for 1031 Exchange treatment. 

The second seller gets payments on a new note worth $1.35 million.You the buyer received the taxable income event from the sale of the first property.

With that said, I am in the position where I will not need a monthly income from my rentals.