I've shifted focus to networking (primarily on BP), a lead generating website, and learning about notes.

How much credibility should something that simple generate?

To me, rental properties aren't truly passive investments unless you use property management, but even then it creates worry where other interest-generating investments might not. 

I'm a new investor starting out fresh at 21, high credit score upper 700s, great job, and my next step in my life that Id like to achieve is generating a great amount of passive income.

I'm starting small now with properties under 80k that I can find in reasonable locations in Illinois for example, Dwight, IL, Ottawa, Morris, areas in Central IL where area is cheap so I can generate a nice stable income.

I agree with the other posters, that the equity in the townhome would generate more cash flow in rental(s) that provide more rental income relative to the property value.

They cost too much and will not generate any greater returns.When renovating you ideally want to see a full return within two years or less with the higher rents.HVAC, especially air, don't bother.

Even though I can find properties that will generate better returns they take considerably more management skill or they will turn bad very fast.

Struggling with the idea of protecting first current assets with TERM/WHOLE life insurance vs first generating passive income through real-estate. 

They are probably second or third generation Nuevo rich that do not respect money.