Active real estate investor with 3–8 rental properties, depreciation, 1031 exchanges, leveraged portfolio.
P-04 models the active real-estate investor with 3–8 rentals — the household where depreciation schedules, §469 passive-loss rules, §1031 like-kind exchanges, and cost-segregation studies are simultaneously live. It's the canonical testing profile for any product that has to render Schedule E correctly.
P-04 exists because real-estate-heavy households break almost every off-the-shelf personal-finance abstraction. A typical P-04 record carries 3–8 rental properties held individually or in single-member LLCs, depreciated under MACRS 27.5-year (residential) or 39-year (commercial) schedules, often with cost-segregation studies accelerating bonus depreciation into early years. §469 passive-activity-loss rules suspend rental losses unless the household qualifies for the $25k active-participation allowance (phased out above $150k AGI — which every P-04 household exceeds) or for real-estate-professional status under §469(c)(7) (750 hours plus more than half of personal services). §1031 like-kind exchanges defer gain on sale via qualified intermediaries and 45/180-day clocks. HELOCs and portfolio loans are the funding mechanism for the next acquisition. None of this surfaces in fixtures designed for W-2 households. Below this archetype, rental ownership exists but is incidental; above it (H-02/H-03), real estate sits inside FLPs or family-office structures rather than direct ownership.
Cash-flow shape is rental-income-and-depreciation-driven, with reported AGI substantially lower than economic cash flow because of paper losses. Median combined income is $353,771 with a tight range, but the actual cash-on-cash from the portfolio is materially different from what shows on Form 1040 line 11. Median net worth is $3.01M with the upper quartile near $5.5M — the real-estate equity stack compounds faster than the household's investable-asset stack. 80% are homeowners (primary residence), and TX, IL, NY cluster 11 of 25 households, reflecting the geographies where buy-and-hold rental investing penciled out through the v3 synthesis vintage.
What makes P-04 distinct from neighbors is the *active-management* nature of the wealth. P-02 has comparable wealth tied to an operating business, but the business is the asset; P-04's portfolio is a stack of separate assets with separate tax basis, separate depreciation schedules, and separate exit options. MB-03 is the closest cousin — also active real estate — but MB-03 emphasizes the DSCR loan and portfolio-lender funding side, while P-04 emphasizes the tax and operations side. Pre-retirement P-04 households often plan to drop into RE-01 or RI-02 by structuring a final §1031 into a DST (Delaware Statutory Trust) for passive income.
Aggregated across the 25 P-04 households in the shipped v3 corpus corpus. Numbers describe the corpus, not population claims.
Jason (48, healthcare) and Madison (41, finance) are an Illinois MFJ household with $354k combined W-2 income against $5.17M net worth and $1.70M liquid — the upper quartile of P-04 net worth on the corpus income median. Neither member's industry tag is `real_estate`; the v3 P-04 corpus has no seed with a real-estate-industry member (the cohort is dominated by healthcare, finance, legal, technology, and manufacturing W-2 primaries), so the rental-portfolio claim is the archetype's testing posture rather than a directly-encoded occupational fact about this household. The diagnostic shape the rep does carry is the gap between $5.17M net worth and $354k reported income: an asset stack that has grown well past what the W-2 line alone explains, with retirement on-track against a $5.13M target but education funding off-track against $957k. That structural asymmetry — long-horizon goals where appreciated equity counts versus shorter-horizon goals where it doesn't liquidate cleanly — is the surface against which §1031 exit logic, depreciation-recapture math, and §469 passive-loss treatment would layer.
Every P-04 household ships with — at minimum — these JSON fields populated. The full schema is documented in the data set you purchase.
Three buyer profiles draw on P-04 most. Tax-software teams use it for Schedule E rendering with per-property line items, MACRS depreciation schedules, §469 passive-loss carryforward tracking, and §1031 reporting on Form 8824 — all features that single-property fixtures don't exercise. Real-estate fintech platforms validate portfolio-level dashboards, LTV roll-ups across multiple LLCs, cash-on-cash and DSCR calculations, and the rent-roll-to-Schedule-E reconciliation flow. Wealth and tax-planning platforms use P-04 to model the cost-segregation acceleration decision, real-estate-professional-status election trade-offs, and §1031-into-DST retirement transitions where active management ends but tax-deferred status continues.
P-04 households actively manage 3–8 rentals — large enough for §469 and §1031 to matter, small enough that the household still self-manages or uses a property manager rather than running a syndicated fund. Larger portfolios with 10+ properties and DSCR/portfolio-lender funding belong in MB-03, which emphasizes the lending side. Households whose real-estate exposure is passive (REITs, syndications as LP) are not P-04; that exposure shows up in N-02 or H-01 portfolios. Real-estate operators whose business *is* real estate at scale (developers, sponsors with carry) are P-02 or H-02/H-03 depending on wealth tier. Households with a single rental property — typically a former primary residence — are A-03, A-06, or P-03 with rental flagging, not P-04. House-hackers and short-term-rental-arbitrage operators are out of scope for this archetype.
P-04 income and portfolio characteristics during v3 synthesis were informed by NAR Investment and Vacation Home Buyer surveys, IRS SOI Schedule E aggregates, and BiggerPockets community survey data for portfolio composition. Geographic clustering in TX, IL, and NY reflects markets where buy-and-hold cash-flow investing penciled in the synthesis vintage; coastal-CA cash-flow scarcity is reflected in lower CA representation than P-01/P-03. Property-level data (per-property basis, depreciation schedules, mortgage terms) is not stored as structured data in the corpus — the household carries aggregate Schedule E totals. Per CLAUDE.md §9 the v3 corpus is frozen and per-domain priors aren't independently auditable; treat calibration claims as descriptive of synthesis intent rather than reproducible.
Real estate investor with DSCR / portfolio-lender funding focus. MB-03 emphasizes the lending and LLC-ownership structure side; use it when the testing surface is loan products rather than tax mechanics.
Operator-owner of a non-real-estate business at similar wealth tier. Buy-sell, key-person insurance, and business valuation replace §1031, §469, and depreciation as the testing surface.
Natural retirement-stage successor. RI-02 is the dividend-income retiree whose real-estate exposure has typically transitioned into DSTs or passive REITs after a final §1031.
Small business owner, early stage. Use A-04 when the household has one or two rentals as a side activity rather than a 3–8 property portfolio with active depreciation and passive-loss management.
P-04 — Real Estate Investor is the household actively managing 3–8 rental properties as a meaningful portion of net worth. The defining features are depreciation schedules (MACRS, often accelerated via cost segregation), §469 passive-activity-loss rules, §1031 like-kind exchange planning, and HELOC/portfolio-loan funding of acquisitions.
Both archetypes cover active real-estate investors with similar portfolio sizes. P-04 emphasizes the tax-and-operations side — Schedule E, depreciation, §1031, §469. MB-03 emphasizes the lending and LLC-structure side — DSCR loans, portfolio lenders, LLC ownership. Use P-04 when your product surface is tax or wealth planning; use MB-03 when it's mortgage or commercial lending.
Combined gross income median is $353,771 with a 25–75 range of roughly $306k to $417k. Median net worth is $3.0M with the upper quartile near $5.5M. Reported AGI typically understates economic cash flow because depreciation shields rental income.
No. Households carry aggregate Schedule E totals — combined rental income, combined expenses, combined depreciation — but per-property bases, addresses, and depreciation schedules are not stored as structured data in v3. Per-property structure is a v4 candidate.
P-04 is tagged for six bundles — B02, B05, B14, B16, B17, and B22 — covering tax planning, executive compensation, retirement contribution strategies, equity compensation, small-business taxation, and behavioral finance. See the right-hand sidebar for the data sets that ship P-04 households.
No. The shipped v3 corpus is frozen and not regenerable from current code (drift was confirmed on 2026-05-09 per CLAUDE.md §9). Sampler improvements land in a future v4 release with per-archetype golden fixtures in CI.
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