@Robert Quiroz I think all of the factors you have listed might contribute.So I’m not going to comment on that but I am going to comment on an assumption you made.If 85% of rents are below market on deals you underwrite then those contract rents are probably THE market rent.You can’t just go based upon area median income to rent ratio.First off urban areas are oftentimes street by street, block by block.

Today's Americans want to live on Sunset Strip and pay Main Street USA prices.

We've used Reg D 506(b) for our syndications and ONLY communicate with investors that have a prior relationship with us.There are two illegal activities that I see all the time. 

If you are a REP, then it will deduct from active earnings.

Thanks in advance for your time.Bobby Short Hey Bobby, you should check out Second Street.

I think the application is active for a month as well. 

do you have issues with the city if there are cars parked on the street or lawn?

There will be stuff like this that activates your "spidey sense". 

I don't think any insurance carriers will give you a new policy these days if there is active K&T. 

There are several different types of income in the US tax code.Two main types are “active income” and “passive income".Active income is money you earn from working, such as wages from a W-2 job or income from running a business.Passive income is money you earn from investments like real estate, stocks, or rental income from your RE portfolio where you earn $ without actively working.Normally, you can't use passive losses (like losses from real estate investments) to offset active income like your salary from a W-2 job.That is unless you are an RE Pro.The reality is, that Real Estate Pro status is just a filing status similar to filing married or jointly.And if you are a real estate professional you CAN use passive real estate losses to offset active income from other sources.To qualify as an RE Pro you must:1.