Terms Starting with #
22 terms
$25,000 Rental Loss Allowance
The $25,000 rental loss allowance is an IRS exception that lets "active participants" in rental real estate deduct up to $25,000 of rental losses against their non-passive income (W-2, business income) each year — a carve-out from the usual passive loss rules that would otherwise suspend those losses.
1% Rule
Monthly rent should hit at least 1% of what you paid. That's the 1% rule. A $185,000 house? $1,850/month or more. Quick screen — not a full analysis.
10-Year Wealth Plan
10-Year Wealth Plan is a financial strategy concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of rental strategy buy and hold deals.
1031 Exchange
A 1031 exchange (IRC Section 1031) lets you sell an investment property and defer capital gains and depreciation recapture by reinvesting the proceeds into a like-kind replacement property of equal or greater value, using a Qualified Intermediary to hold the funds.
1031 Exchange Advisor
1031 Exchange Advisor is a tax strategy concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of building your team deals.
1031 Exchange Deadline
The 1031 exchange deadline comprises two critical timeframes: 45 days from the sale of your relinquished property to identify replacement properties, and 180 days to close on those replacements — missing either deadline disqualifies the exchange and triggers full capital gains taxes.
1031 Exchange Rules
1031 Exchange Rules is a tax strategy concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of portfolio scaling 1031 exchanges deals.
1031 Fatal Flaw
A 1031 fatal flaw is any procedural error, timeline violation, or structural mistake that disqualifies a like-kind exchange and triggers immediate taxation on the full capital gain — potentially costing tens of thousands of dollars.
2-of-5-Year Rule
2-of-5-Year Rule is a tax strategy concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of tax optimization deals.
200% Rule
200% Rule is a tax strategy concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of portfolio scaling 1031 exchanges deals.
200-Percent Rule
200-Percent Rule is a tax strategy concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of portfolio scaling 1031 exchanges deals.
203k Loan
A 203k loan is an FHA loan that finances both the purchase price and rehab costs in a single mortgage. You buy a fixer-upper and fund the renovation with one loan, one closing.
27.5-Year Depreciation
27.5-Year Depreciation is a tax strategy concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of tax optimization deals.
39-Year Depreciation
39-Year Depreciation is a tax strategy concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of tax optimization deals.
4% Rule
4% Rule is a financial strategy concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of real estate investing deals.
50% Rule
Half of gross rental income goes to operating expenses. That's the 50% rule. Taxes, insurance, maintenance, vacancy, management. Not the mortgage. Quick way to ballpark NOI and cash flow before you run real numbers.
506(b) Offering
506(b) Offering is a legal strategy concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of syndication deals.
506(c) Offering
506(c) Offering is a legal strategy concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of syndication deals.
70% Rule
The 70% rule is a fix-and-flip guideline: your maximum purchase price should not exceed 70% of ARV minus renovation costs, leaving room for profit and holding costs.
750-Hour Rule
750-Hour Rule is a tax strategy concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of tax optimization deals.
95% Rule
95% Rule is a tax strategy concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of portfolio scaling 1031 exchanges deals.
95-Percent Rule
95-Percent Rule is a tax strategy concept that describes a specific aspect of how real estate transactions, analysis, or operations work in the context of portfolio scaling 1031 exchanges deals.