My wife and I have been doing some heavy research as of lately in terms of alternate sources of income and investment strategies and have come to an agreement that our ultimate goal is to replace our active income with passive income.  

But they will still add to your basis and reduce your future tax bill.The alternative to this is to do a reverse improvement exchange where you make the improvements while the new property is under your control but owned by the QI who takes title to hold it for you. 

There are alternatives but I know nothing about them.

No one even suggested alternatives, they were quite useless in my search.

It should attract better renters though. 

Crafting your offer with terms that are important to them will always make your offer more attractive.

San Antonio attracts a ton of out of state capital.

@Matt Magill welcome to BP.Yeah, Phoenix is hot, in more than one way ;-)Tucson and Abq are great alternatives, but they have also seen a lack of inventory lately.

The alternative is to get the LLC taxed as a corporation which is less common because it is less advantageous.The case for non US persons is more unusual for CPA, and I believe that the most economic setup for a LLC for tax if at all depends on which country you are resident. 

Also other things have always factored in such as the location of the property, the desirability of the neighborhood or town, the proximity to shopping, schools, or other attractions.