Is it by filing 1065 and generating K1's or is there more to it?

It's all come together pretty quickly in the last year and a half so I'm still coming to terms with it myself.The house hack is a four bedroom 2 bath house that my wife and I purchased as our first home with the intention of having it produce at least some income.

This will almost always take those 12 top producers down to 2-4.

Leverage in an IRA will produce Unrelated Debt Financed Income (UDFI), subject to Unrelated Business Income Tax (UBIT).There are plenty of investment options to deploy your IRA funds, but again, using your IRA in connection with this transaction will disqualify your IRA. 

@Nakul PatelCalifornia is generally more cumbersome than other states when it comes to taxes and filings.

Here's a breakdown to my best knowledge  Real Estate Investment Trusts are companies that own, operate, or finance income-producing real estate.

You are required to file a complete and accurate return, which means reporting the income that you earned along with atleast the direct expenses that you incurred on your rental.There are two comflicting forces - Your tax accountant wants to be aggressive with deductions because it will entitle you to paying less taxes(now or in the future).Your lender wants to see as much income as that will increase your Debt to Income Ratio(DTI).The good thing is that you can speak with your lender about 'one time expenses', that were only incurred in that year and are not reoccuring. 

My full-time gig is to invest in income-producing websites (digital real estate) and I'm working backwards to first increase the authority of my website to then eventually rank organically in Google.Given my experience building sites, I personally don't think SEO is as complicated as any agency makes it out to be.

I personally recommend working with a CPA who prioritizes integrity and accurate tax return filings, so that if you're ever audited, you won’t face back taxes, penalties, or interest.

I've filed the claims.