My partner and I started off by forming an LLC but quickly learned that we should probably have a passive and an active income LLC. 

And then using what's left to payoff probably relatively low interest loan that you have on your rental and loosing interest write off deduction doesn't sound like a wise financial move...Why don't you consider setting up a self-directed IRA, moving your Vanguard IRA in there and then invest passively in trust deeds (or some other alternative assets).

.- I made the transition from residential to commercial a few years ago and I love it, because of the more passive aspects involved. 

It has high valued comps and there seems to be a great potential for a good ROI.The goal for me (and many others I assume) is to lower my monthly expenses while generating as much passive cash flow as possible.

What I'm wanting to do is to flip a few deals this year and then really focus all that cash build up and acquire distress home and force equity into them and create long term passive income single/small multi properties by using cash out refi (the BRRRR strategy).

Getting the beautiful house I wanted for a terrific deal, but more importantly, gaining the network of amazing people I met along the high-pressured way - my mortgage loan officer, closing attorney, agent, roofer, plumber, electrician, and very importantly, my AC installer.

There is a lot to be gained in this township and it requires good analytics of where you spend your money.

Hello Everyone! I am Michael with Alpha Services and I am feeling my way around the site prior to joining.   I am fairly new to this REI world that I have been exposed to and very excited.  I currently live in Henders...

In your scenario, you can write off 40k this year, put that against your cashflow and EQUITY, your operating at a paper loss. 15 year mortgage, your gaining equity at a fairly decent rate and your tenant is paying it!

Gabriel Benavidez when you create passive streams of income and they can pay for the luxuries.