Message Font: Serif | Sans-Serif
No. of Recommendations: 0
What is the criteria, or where can I find that?

It's covered in chapter 16 of that book I linked. But if your friend is intending to lose money on the property, why keep it? VRs can be very lucrative. I'm conservatively anticipating a decent return on equity and cash flow positive from year one, ignoring appreciation. Then again, I'm managing it myself, so I don't start with a 30% or so hit off of gross income right from the start.

If he has a manager, it will be tough to qualify for this as anything other than a passive investment, particularly if he has another job.

Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.