Great post! "Passive income" is only the definition by the IRS, and a misleading one at that. They really need to change that term because it's a serious time/energy/financial investment, and even more so, if the systems are not properly in place. I, personally, will not invest unless it's a C class asset in a B class neighborhood or B class asset in B class neighborhood, hopefully, will pay on time and be good tenants, and the c class building will be able to be repositioned well enough to warrant a rent raise with folks happy for an upgrade and a manager that cares. All of the capex work will be depreciable but need good strategy so not burned by recaptures. I also will not do it without a good property manager that I will want to manage my portfolio. I have no interest in getting involved in tenant ops, disputes, etc but I want them to be well taken care of.