One issue with the "not for profit" deal and claiming it as other income is that expenses are limited and are a SCH A deduction subject to SALT limits and mortgage interest limits, Makes it impossible for most for their itemized SCH A deductions to exceed their standard deduction. With a SCH E rental, at least the rental income won't be taxable in the end.
Usually not a bad idea to work it both ways keeping in mind the required depreciation recapture on the sale of SCH E property.
