I also have W-2 income. 

It's shown that over 85% of investors who take out a Heloc refinance to consolidate the heloc into their mortgage in 3-5 years.As a Banker I tell people every day "Do not" let a low first rate stop you from buying more properties to build more doors, which builds more passive income. 

So you take 20% of the gross which includes all fees like cleaning plus 100% of the cleaning?

I would love to get his thoughts on how that is going and if the headache is worth the uptick in income. 

My wife and I wanted a rental property for passive investment income to try to get ahead in life.

In our experience in Denver and Colorado Springs with midterms, it take 12-18 months for the extra income from it being an MTR to pay for the furnishings.

Thanks to the Cost Segregation Study, the property investors accelerated the depreciation that the first year depreciation was approximately $182,900.The use of the accelerated depreciation strategy helps real estate investors to reduce the tax liability immediately which therefore increases their bottom line due to the offsetting of income.

Understanding and taking advantage of the variety of tax credits boosts the return on your property and allows you to be part of the move to conserve our nation’s historic treasures.When rehabilitating or investing in the rehabilitation of an eligible historic or non-historic building, you may be able to take advantage of one or both of the historic tax credits: 1) Historic Tax Incentives and 2) Historic Preservation Tax CreditsYou can receive a federal income tax credit equal to 20% of the costs associated with rehabilitating the building.

How do people then generate a monthly rental income? 

I found a particular report on https://www.strinsights.com/that lists the best markets in terms of gross ROI, with figures ranging from 6% to 28%.