Your rental activity is reported on it. 1065 will generate two k-1s that will report each share of net income/loss.

If you live in the property how are you going to generate income? 

@David HulitIf my calculations are correct, with rental income of $3,900 and total expense of $2,556 ($1,556 + $500 + $500), this property is generating a 26% Cash on Cash return.

There are few properties east of I-110 (somewhat low income areas) which would generate decent cashflow but being a new investor I am just being little skeptical. 

I just uploaded a random PNG image file as a test, seemed to turn out OK.What's the difficulty you're having? 

We invest in active investments and passive syndications for the purposes of generating income, so I think it would be way too conservative (and silly) to assume that none of our investments would produce cash flow in the future.Sure, we can't exactly predict exactly how much passive cash flow the syndicated investments will generate, however we can be fairly certain that they will generate some cash flow.

I would like to generate good monthly cash flow in a low risk area with good capital growth, with working families and young professionals as tenants.

Car magnets are NOT call generators.  

Those kind of wire transfers generate govt scrutiny of everyone involved.  

This will reduce your rental income and may even generate a rental loss.The article below provides a good overview.http://www.nolo.com/legal-encyclopedia/tax-issues-when-renting-out-room-your-house.htmlCongrats on the first property!