Your passive loss, however, can be.For example:Let’s say my MAGI is $160k, I have gross rental income of $10k, expenses related to my rental of $6k and depreciation of $5k.My net operating income is $4k ($10k - $6k).

I work full time now(40 hrs a week) and own and operate my own plumbing company on the side where I make about 6 times as much.

This may be a good solution for you but be sure to understand the law and operate it properly so you don't lose the protections afforded.Most investors I deal with own the property in their own name.

I normally forbid tenants from operating a business from a residential property.

Last year I adopted the Profit First System (Mike Michalowicz) and use the following accounts to manage my business: Operating Expense, Bonus money, Owners Compensation, Tax, and Vacancy/CAPX/Repairs.

They also operate in the East Valley ;-)

I still use the first guy my realtor suggested from 12 years ago, but now that I have 18 properties we have three different Plumbers/HVAC companies that we can call on.As for the operations side of things a Realtor has been nice to have in the back pocket but of the 18 houses we have bought I think I found 14 of them on our own. 

I won't go with the riskiest opportunistic strategies, and will stick to core and core plus mostly with some value-added.

Need to know the actual operation.

@Christina Luton I really like the solid core vinyl planks.