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. 

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?).

This creates opportunities for short-term vacation rentals, potentially yielding high rental income during peak seasons.3.

I'm currently living down here but all my financials (assets, bank accounts, income, tax filings, etc) are in the US.

This will allow you to acquire more rental units and also being able to use the vacated unit rents at 75% to help your debt to income ratio DTI.There is a FHA 100 mile rule if you do plan on using FHA on your 2nd house hack.

The CAP rates aren't great, the vacancy rates are high, majority of multi-family locations are in areas with unreliable tenants.Overall, it just seems like it's difficult to achieve reliable passive income here.