Unlike passive rental income, the income from an active trade or business is subject to self employment tax (a nasty 15% tax commonly referred to a "social security and medicare" by working folks).

For example, real estate tax.

But if you don’t live in Florida you’re state will probably have their hand out for income tax as well. 

I’m looking forward to moving to Indiana and learning the market. 500 thousand dollar homes have the same property tax as my sub 200 k town home.the one bind I have is to get my forever home, I will probably have to start getting this debt paid down.

It is your patriotic duty to pay as little tax as legally allowed.

Hey David,Selling a rental property in Hawaii while residing in Japan can indeed attract Japanese capital gains tax, as Japan taxes global income of its residents.

I loaned the money to my Sub S Corp and so the money I make from that is not subject to self employment tax. 

The advantage is after 10 years you can sell it without paying any capital gains tax, as long as the IRS doesn't know about it.

If I chose to pass the houses to the kids, and they wanted to sell would they be subject to the capital gains tax as well?

@Ethan Atkinson, I'm under the impression that the IRS doesn't tax a primary residence if you've lived there for a certain number of years.I found this on the TurboTax website:Do I pay taxes on the profit I made selling my home?