Does the Total Rent income or Net Rent (rent - mortgage, HoA, PM) income count towards the Accredited Investor status $200K annual income requirement?
Look at your tax returns for the last two years to find out what your income was or consult with your CPA to help you qualify yourself.
Unfortunately my CPA does not work on the weekend. My tax return shows my W2 and then has a separate section for supplemental income which shows the gross rents but there is no place for total income as far as I can see.
I assume it is whatever becomes a part of your taxable income. Meaning gross rent - all expenses. Principal payment would be added back in as principal payments are profit.
So it is just gross rents, that's it. That is actually very interesting because it can be so hard to raise your salary to $200K but just a few properties you can become an Accredited Investor.
Should be the cash flow. But follow @Alina Trigub 's advice.
I have been verified. Its just gross rents.
Question on this topic to clarify: Can gross annual rents can be added on top of gross salary income to qualify for the $200k annual income threshold for accredited investor status? Or for rental income does this need to be net of expenses?
$150k annual salary including bonus
Own 8 SFH worth $100k each. Each house produces $12k annual gross rents and $6k annual NOI after expenses (NOI - not cash flow, so mortgage not yet subtracted out). No other assets owned.
Total annual gross income = $150k + (8 x $12k) = $246k
Total annual net income = $150k + (8 x $6k) = $198k
Would this person qualify as accredited?
$246K - qualifies from my personal experience.
Per @Alina Trigub consult with your professional CPA/tax accountant.
I have been verified already. It’s the gross rents.
Thanks for the info @Sonny Sach ! I was thinking about the exact same question earlier!