I realize that in order to generate passive income it takes a lot of work and time. 

Also, would be helpful to hear from investors operating within in-fill markets like Bay Area, LA, Boston, Seattle, NYC, etc., where labor costs are a big factor to consider in budgeting this out.What are the premiums you're achieving versus units without washer and dryers?

I do not have operating expenses.

Standard renters insurance policy wouldn't respond here.Doors don't just come down without operator error.

So, I agree with @Jack Pinney that I will not likely generate much (any) passive income with a SF once it is rented, however, I am giving $3100/month to Lincoln Military Housing right now and will be here another 2-3 years.    

I finally got my hands on a little money for a 20% downpayment=closing cost and a little money to operate. 

If you are a real estate professional and more specifically, if the income generated from selling this property would be classified as ordinary income you would have a completely different treatment.

YOU still have to give proper notice,, NO way can you do this the way your thinking,,Download your state landlord tenant laws so you can operate this business properly,Get a copy of their current lease,, IS there a clause that says,, it will automatically revert to a month to month term if not renewed for a longer period..IF so your fine,, you'll just give them notice of lease terms changes the next month,, they don't need to vacate if you want to keep them,, you can give them a heads up what the terms will be, you can suggest it would be nice to start off with a new lease, but understand they have a month to accept that new lease or give proper notice to vacate..It's not that it can't be done,, it has to be done the proper way..

But buy and hold generates wealth - thru rental income, principal paydown, and appreciation.Whether its commercial or residential really doesn't matter - just as long as its buy and hold. 

I'm looking for a rental property to generate cash flow.