Real Estate

Question 1

Rental housing is considered commercial when bigger than

Answer 1

4 units

Question 2

Step 1 of analyzing new area is demographics

Answer 2

Building permits-
Employment
Average household size- important so you don’t build studio apts
Demographics of area
Mortgage rates- if low less ppl will rent
Rental market rates
Occupancy rates

Question 3

Four ways to deduct from taxes

Answer 3

Children
Mortgage interest- deduct interest up to 750k of debt on residence
Retirement plan contributions
Charity

Question 4

Deductions lower your

Answer 4

Taxes

Question 5

Provisional income which can be taxed

Answer 5

One half of social security income
Any distributions taken out of tax deferred income
1099 or interest generated from taxable bucket investments
Any employment income
Any rental income
Interest from municipal bonds

Question 6

Tax free

Answer 6

Exempt from federal state capital gains tax

Question 7

Prospective tenants get

Answer 7

Retail credit file
Statewide eviction and criminal check
Rental collection search
Employment verification

Question 8

Criteria for renting

Answer 8

Complete application 
Up front security deposit
Verifiable employment hx 
Verifiable income
Two pieces of id