Jonathan, Currently no deals just been researching it and getting my team together. 

Hence, they are looking at STR as business income rather than passive income.

Flash forward 5-7 years - Most likely you will be cash flowing and debt was paid by resident and you will also have a loss to carry over on your w2 income.

Be a kind human and dont treat current tenants like they are worthless.

@Daniel BaradRecommend exploring as many sources as possible to get referrals AND cross-reference them to get as much accurate information as possible.Check out NARPM.com, BP’s Property Manager Finder (BiggerPockets: The Real Estate Investing Social Network), etc.Also, encourage you to learn from the mistakes of others - by reading posts here on BiggerPockets about owners not having their expectations met by their current Property Management Company.

So my current situation is this:(1)Primary residence - worth 1.2mm(3) rentals:   Equity $500k.  

I am a current house flipper and looking to start converting into more passive investments and am really interested in the note investing concept. 

Hi Jonathan, My partner and I are trying to get the knob and tube rebate, but we are seeing that it is income dependent and you are disqualified if you make $75K or more for two incomes.

I plan on saving my income and applying for a FHA loan next year.

Long term tenants in place currently paying below market rent at $1200/M.