That doesn't mean they now pay SE tax. 

The paid off student rental plus the 2nd student rental helps pays off the mortage for 2nd student rentals and living expenses for me and my wife. the duplex was  cash flowing approx  $300 month with the old tenants We manage everything ourselves with some help from our family. 

You must have the Business tax license & pay all the fees required.  

As @Dan H. has stated building and ADU can take a while to pay off and could affect the appreciation on the exit sale without a garage which could limit your sales to another investor. 

Urged them to make a withdrawal and pay the tax penalty because this program, training, education will change their life.

I currently live in a 1000 sqft home that we pay a mortgage on.

How does anyone expect people in a place with an average income of 25K a year to pay an average of $1400/mo rent? 

Quote from @Ricardo Lemus: For a newer investor, a good investment is a property that pays for all expenses with some cash left over.

Trans union missed an obvious reject candidate and now I’m paying the price.

Quote from @JooYung Choi: You could consider going for a STR in a vacation market that will give you way more cash flow to pay off the HELOC quicker.