hello all.  first post here.  I am interested in getting into the real estate investing world and have a few introductory questions.  Unlike many of you, I have no interest in doing this full time (at least not until I'm retired); however, I think real estate investing could be a fun, challenging, and more fulfilling way to make money than the stock market.  My day job pays well and I typically find myself in the 33% bracket.  

1.  what are the tax considerations for a relatively high incoming earning real estate investor?  It appears that rental incomes and/or proceeds from a flip would be taxed as ordinary income.  By contrast, stock market returns, if held for a year, yield a much lower LTCG rate of 15%.  What am I missing here (obviously I'm not an accountant!)

2.  I am debt adverse.  Much of what I read here and in several books I've picked up on the subject indicates that the way to make real money is to gain leverage by borrowing money from banks.  I just spent years paying off student loans.  Another mortgage is not really what I want.  I already have a mortgage and take the mortgage interest tax deduction with it (don't think I can do that twice?).  I was thinking of investing the cash I would otherwise put into stocks/bonds into a rental property or rehab/flip.  I'm not counting on monthly cash flows from this to pay my bills or feed my family.  

3. Many investors seem to focus on SFH in the $50-150k range. I imagine there is a lot of competition in that price range from all of you more savvy investors =). Does anyone out there go for a more "high end" rental?

4. If I decide to rehab/flip, I would do this as a team with my brother in law. what have folks done as far as structuring the business? ie, LLC, partnership, me as sole proprietor and him as employee? maybe too complex a question...

5. why should I go thru all the trouble of researching and purchasing properties when i can sit on my butt and purchase shares of a REIT?

Lots of questions; thanks in advance for your responses!