I do this every year, caviat is that it must be a single member llc, then you can combine it with your w-2 and deduct losses from your taxable income.

Question is, if it’s a back-to-back loan arrangement, will the interest part of the repayment be taxable income to me?

Your local PHA may also have resources to help match landlords with eligible tenants.The PHA must approve the lease agreement, ensuring it complies with Section 8 rules and rent limits.Pros:Guaranteed Rent Payments (sometimes even 100% based on certain tenant criteria)High demand for Section 8 rentals, which can reduce vacancy periods.Many Section 8 tenants prefer to stay long-term, reducing turnover rates.Cons:Properties must meet and maintain HUD's health and safety standards, which can involve additional maintenance and inspection requirements.The PHA limits how much rent you can charge, which may be lower than the market rate in some areas.Tenants must qualify for Section 8 based on income level and other factors, which may limit the pool of potential renters.Dealing with government agencies can sometimes be time-consuming and bureaucratic.In summary, converting your home into a Section 8 rental can be a good strategy for attracting and maintaining long-term tenants due to the stability and reliability of government-backed rent payments.

I need to learn more about this but I think the depreciation would only offset rental income (passive income) right?

I am a 29 year old male, married, with joint income living in Dallas.

These are also great, but are generally going to be on the other end of the affordability spectrum from the above, and the rents/incomes reflect that.Regardless even if the restaurant goes dark, there are a couple good things to owning a restaurant building.1) single tenant free standing building are the top of what retail tenants are looking for. 

If inflation impacts your income, it should impact your expenses.

I no longer wanted to have a single source of income.  

I'm anxious about making any financial mistakes that will cause me to be in hot water with the government since I am not sure how to report income from an investment property. 

I intend to hold onto the property long term and yes I would be willing to live there if there was no income potential.