We have found homes that have basements converted into apartments, which we could rent out for income and have also found duplexes with one unit occupied.

For passive income you can look at REITs or DSTs as well. 

Not quite a new member as I've been lurking these forums for years, finally deciding to get serious and figured doing the "New Member Introduction" post would be a good step.Briefly about me:  I'm currently working as a merchant mariner (3rd Mate) and I travel for work about half the year, looking to get into real estate investing to supplement my income and begin building a portfolio during the half of the year when I am home.  

My goal is for REI to eventually become my passive and active income.

I am talking about current operating assets: what did they underwrite for rent, other income, RUBs, taxes, maintenance, turn over, etc.  

Still very close to CA but no state income tax, property taxes DO NOT reassess on the sale (4th lowest property taxes in the US), much more landlord friendly, diversified job growth, population growth, and Reno doesn't have as severe of weather in the summer as Vegas.

And then it will cost you a lot of time and effort to compensate the loss of income.

Can my property management company manage the property and receive the income?

Also, focus on 2 years of job/income stability.Class D Properties:Cashflow vs Appreciation: Typically, all cashflow with zero or negative relative rent & value appreciationVacancy Est: 20%+ should be used to cover nonpayment, evictions & damages.Tenant Pool: majority will have FICO scores under 560, little to no good tradelines, lots of collections & chargeoffs, recent evictions.

Do you show enough income on your 1099's or tax returns to cover a new mortgage payment.