Also, my CPA filed the income as 'short-term capital gains', and after a bit of research i've seen that my income was suppose to be reported as standard income, or is that not a big deal?

This reduces the amount of debt you owe and increases your net worth.

  $7M in sales, $1M in annual net income. 

But also don't want to buy something that doesn't generate income.

                                           - Condo- pro's- own something that will appreciate, can still be in the city, can rent out if we move- passive income.

In many cases, rental losses can be deducted from your taxable income, but there are limitations and eligibility criteria that may apply.

To remove the rental income generated to me personally and have it towards an LLC. 

The website says that the section 8 tenants generally pay 30% of their income.

Wife and I have high credit score and we are high income earners (her W-2 & 1099 for me). 

I recognize we will not be able to offset active W2 income,  but if we do purchase an investment property that has some net positive cashflow, what are the types of tax benefits/offsets we can get?