One just need read the law for a very easy understandingThe preceding sentence shall not apply to any foreign taxes described in subsection (a)(3) or to any taxes described in paragraph (1) and (2) of subsection (a) which are paid or accrued in carrying on a trade or business or an activity described in section 212.And then the reference from the above law to IRS Code 212(1) It has been paid or incurred by the taxpayer during the taxable year (i) for the production or collection of income which, if and when realized, will be required to be included in income for Federal income tax purposes, or (ii) for the management, conservation, or maintenance of property held for the production of such income, or (iii) in connection with the determination, collection, or refund of any tax; and(2) It is an ordinary and necessary expense for any of the purposes stated in subparagraph (1) of this paragraph.And for even simplified version, just look at the IRS guidance on the subject...What Deductions Can I Take as an Owner of Rental Property?

I also have a lot of experience in real estate (I used to sell luxury homes in LA and my license is still in good standing although I haven't been active).

Yet a house backing up to an interstate or busy street typically has a significant decrements in value?

I got active in life.

I am a Navy service member, Active Duty, currently stationed in Maryland.  

This house just had a 20% reduction and an increase in activity this weekend.

I really want to turn that active/ordinary rarned income into passive income as soon as I get credit and learn more about rental properties, leases, etc..

I looked this person up again as far as CPA status and they are still listed as active.

(Assume all outside money is just that, money, and these outside investors won't have any active roles in operating/managing any of the properties.)

Anything is better than a shell with 'street art' on it.