Passive  income is fairly consistent - especially to the bank.  

Aim to purchase and renovate a property for resale, with the ultimate goal of acquiring additional income-generating rentals.

I'm in a very HCOL living area and there are many people with high W2 incomes - how is someone okay with paying over $100k in taxes and not even wanting to do something to reduce that?

Our property managers who were routinely asked to achieve nearly impossible asking rents could not understand that the budget was not infinite.I tried to reduce the process (and friction) to focus on safety, functionality and curb appeal.

Make sure they are experts in your market segment too. if you want to do low income housing, then a great manager who focuses on B class properties isn't going to work.

Essentially, from the buyers prospective, this is a “penalty” paid for either having poor credit (bankruptcy, 90 day lates, overburdened with debt) or lacking income.  

Since you never formally owned the asset, that income could be seen as regular income.

The advantage is that, by living in the smaller unit and renting out the larger one, you generate a lot of rental income!

That GRI does include income for cleaning, taxes etc. though normally, which is really pass through expenses for the most part.

You can always do REI on the side before making it your primary source of income.