@Myka ArtisDamn, I could fly you up here for $200, pay for two weeks in an Airbnb at $1,400, have you buy all my stuff to furnish, and it'd still be cheaper than the way I'm doing it.

I think I know the answer to this, but if I want to reduce my passive income, is paying down the mortgage via extra principal payments reduce my passive taxable income or is it viewed basically as profit?  

Coming from a construction backround, I was somehow molded into buying cheaper and remodeling but I am trying to get into the more smaller upgrades on properties to being up value instead of dumping 50-60k to renovate. 

But still cheaper than your traditional hard money with double-digit interest on a 1-yr loan.They still have minimum credit score requirements though, I think 640+.

So I'm thinking somewhere in between SF and Silicon Valley proper (outskirts of SF, maybe just 20 minutes away, cheaper, and less regulations).

Miles/points have been determined to not be taxable.

One is income, the other an expense, so from this perspective, no taxable affect.Your dilemma reminded of the time when I didn't have a CPA.

Might be cheaper than a safe.  

The costs would reduce your taxable gain on sale.

If you're willing to do all those things you can get into deals cheaper than buying fixed up properties with conventional financing.Once you have two years of landlording experience, that is, two tax returns with the rental income, you'll be able to include the rental income when qualifying for loans.