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Investor Profile

The investor for this project is a professor in the Business School of Clarion University.  He is in his early forties and in good health.  He is married and has three children from 6-14 years old.  His wife also works full-time outside the home.  Most of the investor's investment assets are mutual funds in his retirement account.  He has no previous experience managing rental property.  However, he has good mechanical aptitude and has the tools and equipment to perform much of the necessary maintenance.  He currently has about $2,000 in unearned income (interest, dividends, etc.).  His accountant suggested that net income received (or lost) from the project should be analyzed assuming a 28% marginal tax rate.  Because he has some extraordinary income this year, he will take the maximum section 179 expense for this taxable year so as to offset that income.