Sure you're kicking out a renter that's giving you $x in income, but you're likely paying $x to live where you're at now.  

Other items to consider:- Income or loss from operations in an OZ is taxed normally- An OZ is a lower income census tract designated by each states Governor.

Looking at a couple of properties and the valuation based on income information, expenses desired cap rate is giving a property value that is way off from asking price (mkt?)

For reference, the total rental income is ~$3500 and we are fairly flexible in how much we can put down, though less is obviously better for leverage.

This got me thinking about what I wanted/ needed after retiring...a passive income.

Do you have a high income job?

I currently have a full time job as a Sales manager for residential Solar and I want to build a RE portfolio on the side and build a second source of income and, possibly in the future take RE full time.     

The income is higher at Opportunity Areas.http://www.thecha.org/assets/1/22/2018_payment_sta...

Unfortunately, an appraiser valued them at $550k based on income and now the owner thinks he has something more than what it is.

Investing will bring me passive income in the short term and financial independence in the long term.