When I had a full time job passive investing was a spare time “hobby”; something I did for fun and to build my investment income one day to surpass my active income and take it’s place.Let’s first define some income types:Earned Income:This includes wages, salaries, bonuses, and commissions from your job.Tax rates can vary based on your total income and the tax bracketsPassive Income:Passive income includes earnings from activities in which you don’t actively participate, such as rental income, dividends, interest, owning ATMs, etc.

Also, I think I understand that bonus depreciation is not used for IRA tax calculations, and straight line depreciation is used instead.

And you could discretionarily bonus him after sale, if things go well.

There are a lot of bonuses, improved properties, more demand which means higher tax basis, more money for nearby schools, and parks, and community improvements, and an opportunity for people to afford a home - often fairly close to where they cant (in LA at least).

Appreciation on top of that is a bonus!

Bonus points if you are out of state and have MTR in Birmingham. 

Turns out a few minutes later the book says there is already a flowchart provided in the book bonus content (the 33 forms) that outlines this process.I looked around the files for this but couldn't find the flowchart.

The bonus to this strategy is you could use a 10% loan and purchase as a second home.You could go conventional route and do 20%+ down and use it strictly as an investment, possibly replacing an income with the revenue.

Although, if you are buying it for your family to use and if extra income is a bonus go for it!

Double bonus points for the final pompous "e" and the Middle-English spelling of "main"!