Investment Property

Definition

A property you buy to rent out to strangers who will call you at 3 AM about a leaky faucet and somehow make it your emergency. It's passive income the same way running a marathon is a casual jog.

Example Usage

"I bought an investment property for passive income. There is nothing passive about a tenant who flushes action figures down the toilet on a biweekly basis." - A landlord reconsidering life choices

Related Terms

Advanced

sub2

Short for 'subject to'—acquiring a property while leaving the existing mortgage in place and making payments on behalf of the seller. It's a creative financing technique that makes attorneys nervous and investors wealthy.

🏠 Real Estate

Intermediate

jumbo loan

A mortgage exceeding conforming loan limits set by Fannie Mae and Freddie Mac, typically requiring better credit and larger down payments. It's called 'jumbo' because both the loan and the payments are supersized.

🏠 Real Estate

Beginner

sticks and bricks

The physical structure and materials of a property, as opposed to the land or location. It's what contractors care about and what investors try to look past while focusing on cash flow.

🏠 Real Estate

Beginner

Equity

The theoretical money trapped inside your walls that everyone talks about but you can never actually touch without borrowing against it. It's like Monopoly money that your house keeps score with.

💰 Finance / Accounting🏠 Real Estate

Advanced

condominium declaration

The master legal document that transforms a building from a single property into individual units that can be separately owned. It's the legal spell that lets you own apartment 3B without owning the whole building.

🏠 Real Estate

Intermediate

deed restriction

A limitation written into a deed that controls how property can be used, from prohibiting commercial activity to dictating paint colors. It's your previous owner reaching from the grave to tell you what to do.

🏠 Real Estate

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