I'm 62 and I'd like to create a passive income so I could quit working a job.

If you can't find properties you would like to live in affordably to house hack, I would recommend out-of-state investing with a trusted investor friendly Realtor who has a strong team, including a local property manager, that can keep your tenants happy and increase your ROI while keeping your investments as passive as possible.

I would also make sure you have plenty of reserves. airbnb arbitrage is not exactly what I'd consider passive.

Problem is only "RE pros" get to do it.There are 3 income classifications in the US - Active, Portfolio, and PassiveActive income is income derived from your job, or normal trade or business.Portfolio income is derived from bank instruments - stocks, bonds, etc.Passive income is income earned from investments.Active losses can wipe out both passive and portfolio income, but it doesn't work the other way around.Portfolio (capital) losses are limited to $3,000 annually.Passive losses can only be offset by passive gains.Real estate rental income by its nature is deemed passive per IRC Sec 469One way to get around it is to become a pro - spend more than 750 hours or 1/2 your time in real estate.But most folks aren't real estate pros.

If you're more passive or time is tight, linking with a good agent might be a better move.

@Taylor, building the two single family homes you referenced, are you doing it on already developed lots in a speced neighborhood that just sells lots you build on or did you buy the land and develop from raw, put in utilities, etc....Trying to find a reasonable way to start gaining experience building/developing 

@Josh Cocker When house hacking a duplex, it's true that your rental unit brings in new tax deductions, but it's important to understand how and when those deductions actually impact your W-2 tax liability.Key clarification:Unless you qualify for Real Estate Professional Status (REPS) or meet the STR (Short-Term Rental) loophole participation rules, your rental-related losses (like depreciation, interest, etc.) are generally passive.

For monthly passive income, I'd aim for a value-add single or small multi, then refi and repeat.

Or helping families who want in-law suites or guest houses without moving.Hence, the ads—these companies are selling:Full-service ADU construction (design, permits, build)Rent-to-own or financing optionsLong-term investment strategies for property ownersCompanies are marketing these as a way to generate passive income or boost property value How are these companies that provide Full service profiting ? 

Exploring more passive types.