Residential rental property refers to homes that are purchased by an investor and inhabited by tenants on a lease or other type of rental agreement. Residential property is property zoned specifically for living or dwelling for individuals or households; it may include standalone single-family dwellings to large, multi-unit apartment buildings.
Single-family homes, condominium units, apartments, townhouses, duplexes, and so on.
By law, property must derive 80% of its income from residential purposes to qualify as residential for tax purposes.
• Tax Benefits
• Seasonal Rentals
• 1031 Exchange
• Renting Extra Space
• Lack of Liquidity
• Rising Taxes and Insurance Premiums
• Landlord Role