My long-term goal is to replace my income with passive income to not have rely on my day job.

In general 10% of valuation in gross annual income.

She declares bankruptcy/pays off those cards with the cashed from the sale and moves forward investing as a business entity.additionally, her personal residence is income producing as well since she rents out two rooms on Airbnb and runs her cleaning business out of an office there. my questions are1.

I'm in Texas Thank you  Run background, no felonies, credit not less than 580, no evictions last 5 years, income 3x or so of the rent 

@Cayton Green  This probably won't be a popular opinion, but unfortunately a closing disclosure isn't an indication of final approval or a guarantee that the loan will close. 

I'm not finding much unrenovated even that is even near 4% cap (net income divided by acquisition price).

Loan approval is mostly based on projected rental income, similar to commercial properties.Disadvantages - higher interest rates and can be a riskier investment. 

It is about building relationships and networking.I get why people will say invest in your own backyard but that is NOT the only way, investing where you live does not guarantee success, you can still buy bad deals that don't cash flow or won't appreciate right where you live!

However, if you lose a tenant, you lose all income. 

If you can throw some of the excess income from the high season months at paying down your balances and lowering your credit usage you will very likely raise your credit score.  3) With a higher credit score and lower balance you could probably consolidate the credit card debt into a lower interest personal loan.  4) You need to analyze your listing and your pricing to make sure that you get more off season bookings.