Real Estate Investing for Dentists

• Pays off the mortgage 
• Increases in value 
• Long and Short-Term Rental Properties 
• Tax Benefits

Free Real Estate Investing Study Tools

Interactive Real Estate Investing resources on PracticeTestGeeks, free to start:

• Real Estate Investing Practice Test — 20 questions with instant scoring and answer explanations
• Real Estate Investing flashcards — review key terms and concepts card by card
• Real Estate Investing study guide — topic-by-topic overview of what the exam covers
• Real Estate Investing cheat sheet — one-page printable summary for last-minute review

Commercial Real Estate Investing Books

• How To Succeed In Commercial Real Estate
• Best Ever Apartment Syndication Book
• The Millionaire Real Estate Investor
• The Ultimate Guide To Investing In Private Real Estate
• Value-Added Real Estate
• The Four Hour Work Week
• Negotiating Commercial Real Estate Leasing
• SHIFT Commercial
• Brokers Who Dominate: 8 Traits of Top Producers

Real Estate Investing Academy

• How to Analyze a Wholesale Deal in Real Estate
• Multifamily Real Estate Investing Rules of Thumb
• Intro to Analyzing Rental Income Properties
• Learn the Secrets of Probate Real Estate Investing

Recession-Proof Real Estate Investing

• Employ the Conventional Rental Strategy
• Increase Tenant Retention
• Commit to a Buy and Hold Strategy
• Reduce Tenant Costs
• Explore Different Income Options

Arbitrage Investing Real Estate

• Master Leasing
• Flipping Houses
• Wholesaling Real Estate

Real Estate Investing Myths

• Only invest in city properties if you want to make a profit.
• Before you invest in rental properties, you need first to become a homeowner.
• Investing in real estate carries a high level of risk.
• Open Houses are a waste of time.
• A large sum of money is necessary to begin investing in real estate.

Pros and Cons of Investing in Real Estate

• The Value of Real Estate Increases
• Use Benefits from Real Estate Financing
• The tax advantages of real estate are unique.
• Over Time, Real Estate Appreciates

• Real estate takes a long time to sell.
• Real Estate Can Be Difficult
• Rent Control Has an Impact on Real Estate
• Income from real estate is taxable.

Real Estate Questions and Answers

Sample Real Estate Investing Practice Questions

Try these questions from our free Real Estate Investing practice tests. The correct answer and an explanation follow each question.

1. What is the maximum rental real estate loss a non-real-estate-professional with active participation can deduct against ordinary income (subject to phase-out)?

   • A. $10,000
   • B. $15,000
   • C. $25,000
   • D. $50,000

   Answer: C. $25,000

   A taxpayer who actively participates in rental activities may deduct up to $25,000 of rental losses against ordinary income, subject to phase-out starting at $100,000 AGI.

2. A city government announces a major new infrastructure project: a light rail system that will connect a previously underserved suburban neighborhood to the central business district. For a real estate investor analyzing this suburb, what is the MOST likely immediate impact on the local real estate market?

   • A. A decrease in property values due to construction disruption.
   • B. An increase in rental demand and property values due to anticipated improved accessibility.
   • C. No significant change until the project is fully completed in 5-7 years.
   • D. A shift in zoning from residential to commercial along the proposed rail line.

   Answer: B. An increase in rental demand and property values due to anticipated improved accessibility.

   Large-scale infrastructure projects like new transit lines are significant demand drivers for real estate. The announcement alone can spur speculative investment and increase demand from renters and buyers who anticipate the future benefits of improved transportation, leading to an appreciation in property values and higher rental rates well before the project is complete.

3. A real estate market is exhibiting the following characteristics: vacancy rates are beginning to fall, rent growth is flat but showing signs of turning positive, and almost no new construction is being initiated. Which phase of the real estate market cycle does this describe?

   • A. Expansion
   • B. Hyper Supply
   • C. Recovery
   • D. Recession

   Answer: C. Recovery

   The Recovery phase is characterized by the market beginning to heal after a downturn. Key indicators include the absorption of existing inventory leading to falling vacancy rates, minimal new construction, and rent growth that is flat or just starting to become positive.

4. A real estate investor qualifies as a 'real estate professional' for tax purposes. What does this allow them to do?

   • A. Avoid all property taxes
   • B. Deduct rental losses without limitation against ordinary income
   • C. Use a 15-year depreciation schedule
   • D. Exclude 100% of capital gains

   Answer: B. Deduct rental losses without limitation against ordinary income

   Real estate professionals (750+ hours/year in real property trades) can treat rental activities as non-passive, allowing unlimited deduction of rental losses against ordinary income.

Take the full Real Estate Investing practice test