A QOZ must earn a minimum of 50% of its gross income on an annual basis from QOZ business activities.

They crowdfund to purchase distressed notes and pay 12% interest annually. 

Use the cash-on-cash return formula: (Net Annual Income ÷ Total Cash Invested) × 100.

A steady annual growth rate, diverse industries, and affordable living attract residents.

But there are also some real challenges, like dealing with lower tenant quality on average, the extra red tape, annual inspections, and the longer time it takes to get tenants placed compared to the open market.

You have an infinite ROI bc the property was free, but you are generating a 4% annual return ($100x12) on your 30k equity position. b.

If market is $6K then you're not going to get a new tenant to pay 23% above market value for it, and I don't know any market in the nation growing rents at 23% annually.

@Sam Huang With $200K annual savings, a 50:50 split between real estate and stocks is ideal to reach your $10K/month cash flow goal in 15 years.

You're right that they are expensive, but when you consider the net present value of those dollars, it is well worth the cost (1.5% on the front end then 1.5% annually).My greater concern is from the regulatory side of things.

However, capital losses cannot directly offset rental income, though they can reduce up to $3,000 of ordinary income annually and carry forward.