Owning real estate is not passive.

Income Snowball, a system of investing in which a person can create self-sustaining passive income).

I have passive investments all over the country.  

I've also held of holding properties in individual LLCs that are owned by one S corporation, which allows for a 60 / 40 split between ordinary income (regular tax) and dividends (capital gains tax rate).With the goal of minimizing taxation and liability protection, what would be the recommendation from more experienced people here?

.: Quote from @Trevor Finn: Hey @Kevin M.It sounds like you’ve got a solid plan to build passive income with a focused snowball strategy!

Vanessa, If you choose the seller financed route, you could potentially continue investing under the bank's stringent debt-to-income radar, so to speak.

If investing in real estate was easy, everyone would have passive income.

Making real estate your primary income source isn't passive unless you have access to significant capital.

Jimmy,You need to show (2) years of 1099 SE income in order to use FHA, or traditional financing to get approved for a mortgage.

Real estate is an excellent avenue to help you achieve those goals, especially since it can create both passive income and long-term wealth.