The Midwest markets offer a lower barrier to entry as they provide lower home prices and taxes, a lot of these markets are landlord friendly as well.

That plus your debt-to-income ratio is really going to be the determining factors on your budget for your house shopping.

The goal is to generate income from my primary residence.  

The second would be to spread out taxes instead getting hit all at once from Uncle Sam. 

Hey - I thought I was in the clear - but perhaps not (was about to file my taxes . .  ). 

Yes, but you will be subject to UBIT taxes. 

Self storage in high income areas of Spain.4.  

Stuff like that will bug you, but I keep telling myself, it's passive income, you wanted to be hands-off...:)  Hopefully it's rented out fully soon or we'll be looking to do a SFH with another management company most likely.

I just sold a duplex for $520,000 in four days, even though the current income is $1800/month and the market rate is only $3,000/month.

you don't just go to a website, write in some numbers and poof, get a proof of funds. you need to speak with a mortgage officer to go through your income, assets, debt, etc. and see if you qualify for it.