Active real estate investor with 3–10 rental properties, DSCR loans, LLC ownership, depreciation schedules, and 1031 exchange planning.
MB-03 is the property-cashflow underwriting archetype: 3–10 rental units financed on DSCR loans through LLC ownership, with Schedule E flowing through K-1s and depreciation schedules that drive most of the federal tax outcome.
MB-03 exists because DSCR-loan origination is a distinct underwriting regime — the borrower's personal DTI is a screening factor, not the deciding one. Lenders qualify the property's debt-service-coverage ratio (typically 1.0–1.25x minimum), not the W-2 income of the guarantor. That carries downstream effects across the testing surface: TRID and the QM/ATR rule do not apply to business-purpose loans on non-owner-occupied property, ECOA still does in a modified form, HMDA reporting differs, and Reg Z disclosures are largely off the table. Tax surfaces are denser: IRC §469 passive activity loss rules with the real-estate-professional exception, depreciation recapture under §1250 (unrecaptured §1250 gain taxed at up to 25%), §1031 like-kind exchanges with the 45/180-day timelines and qualified-intermediary requirements, and IRC §199A QBI deduction on rental activity that rises to a §162 trade-or-business (the safe-harbor in Rev. Proc. 2019-38 is the test most software gets wrong).
The structural story is a household with a healthy W-2 or active-business income (median ~$349k) and a much larger balance sheet driven by leveraged real estate. Median net worth is $3.2M with most of it in investable / property assets (median $1.77M investable, $1.23M liquid). Properties are held in single-purpose LLCs for liability and lender-pool reasons; the borrower personally guarantees the DSCR debt but the title is in the LLC, which means transfer-on-death, due-on-sale clause carve-outs, and Garn-St. Germain protections must all be modeled. Cash-out refinances against appreciated rentals are how the portfolio scales.
MB-03 is intentionally narrower than P-04 (Real Estate Investor in the accumulation-peak cohort): P-04 may include 1031-rich passive owners, syndication LPs, and family-owned long-term holds; MB-03 is specifically the DSCR-loan-financed, LLC-owned, active landlord whose underwriting and tax footprint differs from a syndication investor's. The DSCR-loan choice is the diagnostic feature — without it, the household belongs in P-04.
Aggregated across the 13 MB-03 households in the shipped v3 corpus corpus. Numbers describe the corpus, not population claims.
Michelle and James anchor the lower-net-worth quartile of MB-03 — finance plus real-estate-professional income, $2.4M net worth, and only $30k of personal liabilities because the rental-property debt sits inside the LLC wrappers and doesn't show on the personal balance sheet. They are the file that breaks net-worth aggregators and personal-DTI calculators that fail to reach into the K-1s and Schedule E entities; the 'real underwriting' is property-level DSCR plus the §469(c)(7) real-estate-professional election that lets the spouse's rental losses offset W-2 income. Retirement and education funding are off track because cash is being recycled into property acquisition, not 401(k) contributions.
Every MB-03 household ships with — at minimum — these JSON fields populated. The full schema is documented in the data set you purchase.
Portfolio-lender LOS platforms and DSCR-loan origination shops use MB-03 to test property-cashflow underwriting flows that personal-DTI engines don't exercise — DSCR floor logic, gross-rent multiplier, vacancy reserve, and prepayment-penalty schedules. Tax-software teams use it for IRC §469 passive-activity loss tracking across multiple Schedule E entities, §1031 deferral and basis-carryover modeling, depreciation-schedule generation including §1250 recapture on disposition, and the §199A QBI safe-harbor decision under Rev. Proc. 2019-38. Wealth-platform teams use it for the LLC-titled-asset reconciliation problem — net-worth aggregators routinely miss assets held inside investor entities, and this corpus surfaces that failure mode directly.
MB-03 is the DSCR-loan, LLC-owned, active-landlord cut of real-estate investing. Households whose real-estate exposure is primarily through syndication LP interests, opportunity-zone funds, or large family-held long-term holds belong in P-04, which is the broader accumulation-peak real-estate-investor archetype. Pre-IPO concentrated equity holders who happen to own one rental belong in A-06 or P-01, not MB-03. Distressed rental portfolios — DSCR loans in default, properties underwater — are an edge of MB-02 rather than MB-03, although the disclosure regimes diverge sharply because business-purpose loans lack the consumer-protection perimeter. Real-estate-professional-status households where the W-2 spouse drives most income but the §469(c)(7) election sits with the lower-earning spouse may also surface adjacent A-04 or SB-01 patterns.
Income, leverage, and property-count bands during v3 synthesis were anchored to IRS SOI tabulations of Schedule E filers and Federal Reserve Flow of Funds residential-investment statistics, with state concentration tilted toward CA / TX / IL to surface high-cap-rate versus low-cap-rate market behavior. The corpus assumes residential 1–4 unit DSCR loans; commercial multifamily and CMBS-financed deals are out of scope. Per CLAUDE.md §9 the v3 corpus is FROZEN — the priors above describe synthesis intent, not auditable distribution fits. DSCR rate sheets and prepayment-penalty terms are realistic in shape but not tied to a specific portfolio-lender snapshot.
P-04 is the broader real-estate-investor archetype — syndication LPs, family-held long-term holds, and passive owners. Use P-04 when the underwriting and tax footprint isn't DSCR-loan-driven.
MB-01 is consumer-purpose primary-residence origination under TRID and QM/ATR. Use MB-01 when the underwriting is personal-DTI based rather than property-cashflow based.
SB-01 is the operating-business pass-through owner. Use it when the LLC / S-Corp houses an active trade or business rather than rental real estate.
E-02 covers grantor-trust estate-planning structures. Reach for E-02 when the rental portfolio is held inside an irrevocable trust and the testing surface is grantor-trust income reporting.
MB-03 — Real Estate Investor (DSCR / Portfolio Lender) represents active landlords with 3–10 rental units financed on DSCR loans through single-purpose LLCs. It is the archetype for property-cashflow underwriting, Schedule E aggregation, IRC §469 passive-activity loss tracking, §1031 exchanges, and §199A QBI safe-harbor testing.
P-04 is the broader accumulation-peak real-estate-investor archetype and can include syndication LPs, family-held long-term holds, and passive owners. MB-03 is the narrower DSCR-loan, LLC-owned, active-landlord cut where the underwriting regime and LLC-titled balance-sheet structure are the diagnostic features.
The 13 shipped MB-03 households have a combined gross income median of $348,951 (25th–75th: $327,996–$406,724) and a median net worth of $3.2M with median investable assets of $1.77M. Most of the balance sheet sits inside LLC wrappers rather than on the personal balance sheet.
Yes — the household profiles support modeling of 45/180-day §1031 timelines with qualified-intermediary fund flow, basis-carryover, and §1250 unrecaptured-gain treatment at disposition. Specific exchange sequences are downstream computations against the household data, not pre-baked attributes.
Personally guaranteed but titled in the LLC; the corpus reflects this by carrying low personal liabilities relative to the rental-property leverage held inside the LLC wrappers. Net-worth aggregators that don't traverse K-1s and entity-level Schedule Es will under-state the household's real leverage.
No. The shipped v3 corpus is frozen and not regenerable from current code (drift confirmed 2026-05-09). Improvements land in a future v4 release with per-archetype golden fixtures in CI.
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