Total Rent income or Net Rent income for Accredited Investor

15 Replies

Hello folks,

Does the Total Rent income or Net Rent (rent - mortgage, HoA, PM) income count towards the Accredited Investor status $200K annual income requirement?

Thanks,

Sonny

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.

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.

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?

For example: 

$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?