I first got interested in real estate investing because of my better half, she always spoke to me about passive income and building a financial wall for our family through investments, so here I am jajaja. 

If your rental income isn't growing faster than inflation, you won't have the additional income to pay these higher prices.

Looking for creative ways to generate income without big investment such as homes or Appartments. 

But if instead your concern is a credit hit from the accumulation of mortgages as you make each purchase - that impact should be largely offset by the additional rental income that each should bring.

As someone mentioned above, a lot of rentals are managed with specific tax goals (like offsetting high W-2 income) in mind.

Because the Property Class dictates the Class of the tenant pool that the property will attract.The Tenant Class greatly impacts rental income stability and property maintenance/damage by tenants.Both Property Class and Tenant Class will affect what type of contractors, handymen and property management companies you should target and be willing to deal with a property.The Property Class will also impact the maintenance & renovations you do to,, “Maintain to the Neighborhood”.Why is that important?

Always verify income, check rental history, and call previous landlords.

UDFI or unrelated debt financing income only applies when there is income on the property.

He wants some cash either in lump sum or annuity in the form of interest and principal payments or continuing to receive majority of income.

If you do the rental you lose the $500,000 avoidance at the end of 5 years unless you’re military.I believe it’s worth it for a few reasons.A) High W2 income earner with no flexibility for tax deferralsB) Have a long term goal to own a few income producing properties in the Chad Carson small but mighty mindsetC) Plan to hold property for long term.