It sounds like either you buy a straight rental or a 2-4 unit house hack.The biggest advantage to house hacking a 2-4 unit is (1) you can put less money down with a better interest rate and (2) you can use the income from the other units to qualify.I don't know where you are based out of so not sure how far your $85K pre-tax income goes.

Quote from @Steve Vassallo: Looking to replace my work income with rental income The only other ways to do that is to start flipping, doing wholesale deals, or taking advantage of airbnb arbitrage.

The key is what relationships do you have and how do you operate your business to give you some type of competitive advantage?

Kowal: Quote from @Alan Asriants: Owning real estate comes with many tax advantages and is a big reason some investors diversify into property.

I’d connect with a lender to get pre-approved, a local real estate agent to find a good deal, and a maybe CPA to make sure you're taking advantage of the tax opportunities and get set up correctly for future growth.

The advantage is lower entry prices compared to coastal markets, so you can get more units or better deals with the same capital.

One advantage of using a HELOC is that, from a tax perspective, the funds you draw aren’t considered taxable income — it’s technically borrowed money.

This can result in properties acquired at or above market value, inflated projections on returns and cash flow, and limited support for essential aspects like insurance setup or LLC formation.In contrast, focusing on providers with a specialized approach to a single market can offer significant advantages.

When you combine that with appreciation, principal pay-down, and long-term tax advantages, the total return is usually much higher than it looks.

Cash flow (the real numbers)Most rent-by-room investors I know (myself included) see 2–3x the cash flow of renting the house as a single unit when the property is set up correctly.Example:$1,800/month as a standard rental$3,000–$3,600/month renting by room (4–5 rooms)But it only works if:Bedrooms are good sizeCommon areas are functionalLayout supports privacyYou’re 21 with time to manage it, that’s an advantage.