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Upon answering a learner's question an instructor should then:
Rental Offset
A financial mechanism where rental income is used to offset or reduce mortgage payments, expenses, or other financial obligations related to the rental property.
Passive
Referring to income generated from activities in which the individual is not actively involved, often subject to different tax rules.
Recourse Liabilities
Debts for which the borrower is personally liable, meaning creditors can pursue the borrower's other assets if the collateral does not cover the debt.
Nonrecourse Liabilities
Nonrecourse liabilities are obligations where the lender's recovery options in case of default are limited to the collateral securing the loan, not the borrower's other assets.
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