I’m not sure of the legitimacy or legality of all of this, but it has me looking more closely at this type of business to see if that may be how I need to word my LLC’s services provided for my properties and then potentially grow to provide similar services for others’ properties.

I appreciate that it is hard to get started in life and you are very young, but that does not excuse creating a false impression online to induce potential investors to "connect" with you.

It's designed to prevent taxpayers from deducting passive losses against non-passive income, which often leads to situations like you've described.Your concern about potential double taxation on the $2,000 net income is valid.

Not very much risk for him.

Having paid off RE eventually cash flows quite nicely :)  Yes very wise words,I question if I'm risking too much using a HELOC.

Basically any connection is a potential fire hazard, so going through and replacing each connection is the best way to mitigate any fire risk, short of replacing all the wire with copper that is.

There will always be some risk involved. 3.

conversely, as i already mentioned, if you buy something distressed, you have the potential for greater returns... but it's not going to be passive.hope this gives you some things to think about

I know this is a real estate forum, but just realize that you'd have missed that AND lost 5% since you have to pay yourself the G fund rate, vs. the G fund paying you.I'm not anti-real estate, but I don't prefer it when people take extra risks with their retirement. 

It's an exciting journey with great potential for financial freedom.