And even it's SF when you purchase it, again because it's not 100% MF including the county/city classification, you can use rental income from both units to help you qualify for future investments.Option #3 is something to use only when you're not willing or able to move into the property.

That was an applied master class. If

So I just look up what rents are and figure the more rent the higher class? If

If you're considering going the turn key route, here's what to look for in a turn key company, and avoid the ones that: Don't allow financing or a finance contingency (it can be a good indication they are selling above market value) Don't allow for your own independent property inspection Are not realistic with their pro forma's (i.e. they don't include vacancy or maintenance projections or use unrealistically low vacancy factors) Require you to pay for any renovation upfront Sell only in cheap. low end neighborhoods Don't accurately represent the neighborhood/property classification Don't have consistent rehab standards for all properties Don't provide a scope of work for the property Can't provide references of repeat investors Require you to close before a tenant is in place

Do you know the bed bath count and location class? If

Real estate is a pretty efficient asset class. If

.: I told them I had no classifications stating I was an accredited investor and they allowed me to invest anyway knowing I wasn’t.  

Problem is only "RE pros" get to do it.There are 3 income classifications in the US - Active, Portfolio, and PassiveActive income is income derived from your job, or normal trade or business.Portfolio income is derived from bank instruments - stocks, bonds, etc.Passive income is income earned from investments.Active losses can wipe out both passive and portfolio income, but it doesn't work the other way around.Portfolio (capital) losses are limited to $3,000 annually.Passive losses can only be offset by passive gains.Real estate rental income by its nature is deemed passive per IRC Sec 469One way to get around it is to become a pro - spend more than 750 hours or 1/2 your time in real estate.But most folks aren't real estate pros.

@Thomas Loyola My stuff is probably B- class if you take into consideration the actual criteria for classes.

Keep in mind the area surround Temple University has a zoning overlay that limits density beyond what the same zoning classifications allow in other areas of Philadelphia.