Real Estate Investment Guide

Question 1 of 8

What is "house hacking" and why is it recommended for beginners?

Renovating houses to flip them

Living in one unit of a multi-unit property while renting out others - lowest capital requirement

Using technology to automate real estate management

Avoiding taxes through legal loopholes

Question 2 of 8

What is the "1% Rule" in real estate investing?

Put down 1% as down payment

Monthly rent should be ≥ 1% of purchase price

Invest only 1% of your income

Property should appreciate 1% monthly

Question 3 of 8

What is the main advantage of REITs (Real Estate Investment Trusts)?

Highest returns of all real estate investments

Zero landlord responsibilities and extremely liquid

Best tax advantages

You can use leverage

Question 4 of 8

What is a good target Cash-on-Cash return for single-family rentals?

2-4%

5-7%

8-12%

20-30%

Question 5 of 8

How much capital is typically needed for house hacking in the US with an FHA loan?

$5k-10k

$15k-40k (3.5% down payment)

$60k-80k

$100k+

Question 6 of 8

What is Cap Rate (Capitalization Rate)?

The interest rate on your mortgage

Net Operating Income ÷ Property Value - measures property performance ignoring mortgage

Maximum amount you can borrow

Annual appreciation rate

Question 7 of 8

What is the main disadvantage of vacation rentals (Airbnb/VRBO)?

Lower income potential than traditional rentals

Much more work (cleaning, maintenance, guests) and regulatory risks

Impossible to get financing

No tax benefits

Question 8 of 8

What are the five benefits of real estate as a wealth-building asset?

Speed, liquidity, simplicity, low capital, guaranteed returns

Leverage, cash flow, appreciation, tax benefits, inflation hedge

No risk, high returns, easy management, no work, passive income

Quick flips, immediate profit, no down payment, instant equity, fast sales

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