E (or the equivalent partnership schedule).An active business files on Schedule C or equivalent, and pays self-employment taxes.

I recommend that when you buy and hold, don't bet on or include appreciation in your analysis. 

I would be concerned that you really are at the top of the market so betting on equity and the long haul is a rough bet on those properties.

Most passive investors will stop there, but there are more qualitative criteria you can look for, like what markets you want (emerging markets), class of property (C+ or better), class of neighborhood (B- or better).

Decide only after you inspect their home.I personally do not bet on making additional profits from pets and simply do not allow them.

Hi all, I currently have a 3 bed 1 bath apartment in a C or C- neighborhood that we're trying to get rented out.

If you are in a C or D neighborhood, it might be better to have someone that you know has the income, even if they can't prove it that way, than having someone that barely meets the requirements, but is in a job that has a very high turnover and could get fired any day. 

For MF, Class A has a lower cap rate than B, C or D because it is safer.Cap rate can be flipped to ballpark the market value based on the NOI.

Originally posted by Mitch Kronowit:BTW, the wealthiest investors I've met or read about in California made their money in appreciationI don't doubt you, but what about the ones that are now flat broke because they bet on appreciation at the wrong time?

Jason, the note holder doesn't have to show you anything nor give you any notice, like I mentioned up there, get out of the middle and let your attorney take care of it, won't cost you in the end I'd bet on it, play your cards right, let him fold.