I wanted to obtain a rental to gain passive income.

It's a great sign that the tenant is *asking* you before letting his girlfriend move in so you should treat them as any other tenant application: - credit app- background check- income check etc. 

Now, I know you were asking about rental income...and that you can find in the comps too. 

We did not need help in deciding what our investment niche would be; we needed help in creating and implementing a tax strategy plan for a married couple composed of a high-income earner and a real estate agent and business owner.

SBA won't loan on the gambling income, or anything passive- your bottom needs to be in the gas station chair.SBA loan now takes LONG processing time unless you go direct.

Or is that considered a “hands off” activity and not taxable?

The hope on this is to eventually use the income made off of the first rental to acquire another one, and so on. 

He found a home that he loves in Texas but can’t get approved for a VA loan because he only has his pension as income. 

Second homes cannot be utilized for DSCR loans because they can't produce income to qualify.

Hint: if there's only one box for the rental income then enter the combined rent from the purchase price.