Rather, it will be considered earned income... and if you have losses especially the first year with a bunch of start up costs and depreciation... and if your money is at risk (let's assume Yes), then this business venture can offset (or add) to your W-2 income.This is how short-term rental loophole works.

There are lots of ways to make money.

make millions with no money

That seems like a lot of money in Mexico.  

Plus, we have crazy inflation happening naturally due to all the money pumped into the system several years ago.Any there any other obvious reason for the increase in your opinion Henry?

Throw an LLC together with a few people with $1m each, and buy it, San Francisco isn't short of folks who got lucky with this or that IPO and have the money, most of those tech companies have an unofficial employee-maintained slack/discord channel where they talk about real estate stuff.

Quote from @Aroldo Gonzalez: If you borrow money from your current property, that will increase your debt and reduce - and possibly eliminate - your cash flow. 

Every area and every deal brings different risks.

You can also hold money for maintenance, capex, taxes, insurance, or other projected expenses.

I've done a little exploration on the free AirDNA and it looks like there's potential to take in a significant amount of money from very modest sized properties.