Plain-English explanation
Real estate counts as passive for tax purposes if you're not REPS.
Examples
- 20 SFR doors at $300/mo = $6k/mo passive.
Common mistakes
- Confusing passive income with no work.
Related questions
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Wealth Building
Passive Income
Income requiring minimal active labor — rental cash flow, dividends, royalties.
Reviewed by Keiron Brown, Founder & Editor, CalculateRealEstateROI · Educational estimates only — not investment, financial, tax, or legal advice
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