There is truth to this, you have to structure yourself a certain way.

The best thing you can do is structuring everything through a corporation. This also allows some additional avenues when considering financing too. It also gives you the liability shield in case things go sideways.

There's overhead here though, for sure, and plenty of ways to go about it the wrong way, many footguns exist. Its not stress free.

If you want truly passive investments, index funds are the way to go. Which is why I think buying a home for living should fundamentally have different criteria