I cannot answer if taxes would be more or less if he sells outright, what I can say is he will pay california taxes on the interest income of the loan.

Nor is needing income at all! 

Lots of information about insurance coverage for lenders within the book I co-authored - Lend to Live: Earn Hassle-Free Passive Income in Real Estate with Private Money Lending published by BiggerPockets.

Buy and hold rental income is generally considered a passive investment income unless you are a real estate professional.

Have a very stable job and income but DIT slightly higher to get easy approval.

Hi everyone,I’d love to get people’s opinions on my beach condo short term rental.1 bedroom, 1.5 bath. 800 square feet.All the numbers I used are taken directly from the current owners records.I made the str income $4,000.00 a month because the previous owners were grossing about $51K a year.This is not a home run.

Like most of you, my goal is to invest in single or multi-family properties and start creating some passive income and equity. 

This means I may owe US income tax on those proceeds, even though I am paying the required Kenyan taxes on the same rental income.

Not to get rich or replace my income with real estate.

When it comes to getting an investment loan you can qualify based on your income or the properties rental income.