@Rebecca E.

The three categories are as follows:• Category 1: Gross income from interest, dividends, annuities, royalties, and rents, which is not derived in the ordinary course of an active trade or business.• Category 2: Gross income from a trade or business that is a passive activity or a trade or business of trading in financial instruments or commodities.• Category 3: Net gain (to the extent taken into account in computing regular taxable income) attributable to the disposition of nonbusiness property and property other than property held in a trade or business to which the 3.8% NIIT does not apply.

In commercial leases, there is commonly language mandating the tenant execute an estoppel upon request.  

Investment Info:

Single-family residence buy & hold investment in Phoenix.

Purchase price: $194,764

Cash invested: $39,436

Bought another primary residence and turned this current one into a rent...

.**3**the "plan" was to wait until spring 2022 to purchase the next adventure(seems as all my tenants are on M2M  i cannot use the rental income until it hits my Sch E, so had planned to wait until after taxes)but i never stop looking and found a duplex in the next town over (Racine, WI)Another over/under Duplex ~ 1,000 sq/ft per floorLaundry/storage in basement, small garage as listed tenants were paying $675/$69525% down as it  is an investment on $150KPITI+water is ~$900/mo  gross rent is now $1695/mo and still has  room to grow.

If you close and are able to execute your business plan then this will all work out. 

Title is transferred when consideration is received and a warranty deed executed and handed over to buyer.

I'd be happy to put you in touch with the necessary people to help execute your model.All the best, Uri

MN has a fairly slick deal where you can fill out a spreadsheet and it generates and e-signs.

Typically there are three main buckets of expertise that need filled: sourcing the deal, sourcing the capital, and executing/oversight business plan.