The group the will be hurt the most is buyers, especially low income buyers.

I'm trying to come up with some income estimates to start analyzing properties.

So, the profits (generically, sales price minus cost basis or prucahse price) are taxed as ordinary income also subject to self employment tax.Sale of an investment property, i.e. one that was rented, is considered capital gains.It is your intent of the property that signifies which taxation applies. 

@Amy Hu I am in the same boat as you, no passive losses because my income is too high. 

Ill explain my situation the best I can...Ive got a 100% remote corporate w2 Job making approximately 200k that offers a bit of flexibility since its mostly just project work.

A lawyer may be able to argue you have pierced the corporate veil and have the entities disallowed.

Let's break down the numbers for the multifamily property you're considering in Chicago:The multifamily property in Chicago is a potential investment opportunity with a purchase price of $580,000 and a monthly rental income of $4,200.

Quote from @Robert Rixer:  Have you heard of the installment method of income tax accounting.?

I have around $15,000 in the bank which could afford a 3.5% down-payment, but closing costs and the first few months rent could be a stretch as my job hasn't started yet (The home would still be under construction so its possible I could achieve W2 income before actually paying a mortgage?).

When buying a new property today, I'd definitely be conservative when it comes to rental income projections.