I guess the goal would be to have $450K gross rental income.

Purchasing a $500k personal residence in AZ, under contract on a single family which we intend on building 8 units on, have one flip under construction snd are making an offer on another flip today which pencils out to $75k gross profit (pre-tax).

One of the biggest expense of any business is payroll, of which you will be the only employee. 

Hi @Will Fraser Yes I am a W2 employee with 9-5 job 

@Kathy ZickenbergIt doesn't seem like your CPA is providing accurate advice.It doesn't matter much about the income tax rate of the state you plan to invest in.You live in CA which is a state with one of the higher tax rates.Furthermore, rental properties, will likely show a tax loss as a result of depreciation(not guaranteed, but likely).Good thing is that California is not a gross income state and they will allow you do reduce your taxable income from rental properties so long as you meet the AGI threshold(below $100,000 - $150,000 threshold).

XXXXXX agrees to pay 50% of gross damage/cleaning charges ($1,250) and 50% of past due water service (160.67) for a total of $705.34 (SEVEN HUNDRED FIVE DOLLARS AND THIRTY FOUR CENTS)Tenant will pay the above amount owed in full no later than February 25, 2017, without further demand from Landlord.

They take 25% of gross revenue of your nightly stays off the top, + 3% Airbnb fee, plus taxes.

@Andrew T.Yes as the funds would be used to cover costs directly related to the purchase of a principal residence for the employee (you). 

@Raul Cesar cortesYou should run the scenario before you decide to do so.First and foremost - The 401K loan default will result in taxable income + penalties.Second - This will increase your total adjusted gross income which may put you over the $100,000-$150,000 threshold that allows you to utilize rental passive losses potentially disallowing you to use the rental losses.I also think it's pretty hard to just default on a 401K loan without leaving the employer or quiting(unless this already occured).You should consult with a tax advisor before doing so.

. $50k a month in W-2 Earnings may end up being a lot less than $30k/mo in real estate gross because of depreciation and other perfectly legal deductions.