@Derrick WallaceSee following for rules on self-employment income. https://www.irs.gov/individuals/tax-trails-self-employment-income-9

But, could I minimize risk of renter defaulting on payments for the 2nd property by turning this property into a section 8 housing unit with guaranteed income from the gov't?

Quick info on me that could possibly help: Licensed realtor, good credit, first rehab I’ve owned but not the first flip project completed by the GC or by myself as the realtor, strong W2 income in addition to real estate.

But yeah wow, then people don't really have to get active income from flipping business or something like that if I do cash out refi well. 70k is when coming from my pocket. 

The city's robust rental market driven by a growing population, ensures a steady income stream.

RE is nothing but getting out a spreadsheet and putting in all of your costs and all of your income.

I'm going to guess loss of income on some level.  

If they report to the credit bureaus it will affect your DTI as your DTI is calculated based on what's on your credit report compared to your income.

Try a house-hacking calculator to guess rental income.

All buildings close to the beach requires piling on the first floor then you can either add 2nd or 3rd floor depending on your business plan.You can reachout to real estate agents that are predominant in the area to provide you with short rentals income report.Let me know if you need any help or info about building ground up.