Check with a local attorney, but I do not believe New York views income derived from real property in other states as NY source income, as a state like California does.

I do get the difficult to evict argument however in my opinion that is derived from those where it is difficult/costly to evict anyway.  

If they wanted to be really clever they could package them as derivatives and allow a way for others to go long and short.If things get bad they might even just turn the properties over to their creditors rather than having to liquidate in the retail/small investor market.

All of this protection cost money for an insurer to provide, as they're creating a financially engineered solution in the background using actual assets and complex derivative strategies.Many VA issuers were crushed on these products when the market tanked a few years back, as they hadn't property priced in the risk of having to give investors back their principal after stock values had fallen severely.

Since we, my partners and I, derive all of our income from the rental properties, perhaps that's the reasoning?

It is very difficult if not impossible to derive any type of appreciation from these type of houses.

Mindy,UBIT stand for Unrelated Business Income Tax and applies on any income in your 401k that would derive from active trade or business.

@Rebecca ReadusA couple thoughts:-- When working with house-hacking clients, I set up searches for listings with the words "walk-out" and any derivation of those words in the listing.

You can always go to a banker and ask them what would derive the most valueGino

One correlation does not mean causality, especially when using macro data to make prediction of an asset class that mainly derives its value from local conditions.