FAFSA Question 90 (Parent's Net Worth of Investments)

<p>The question is: What is your parents' net worth of current investments?</p>

<p>I have no investments but I am not sure if my parents do.</p>

<p>They have retirement 401k and I know that shouldn't counted for this question. But my parents currently live in a 2-family house that they own. One side is our home and the other side, we are renting out. Does that count as a real estate investment? If so, how do we figure out what number to enter? The mortgage is fully paid so half of the house's value since its a 2-family home?</p>

<p>The other half of the duplex would be considered an investment.</p>

<p>For FAFSA purposes, you’d need to estimate what the other half of the duplex would sell for – but you’re estimate should be for a cash sale with no improvements made to the property (ie, no painting, yard fix-up, …) with a tenant in place paying the rent that the tenant is currently paying. This is probably less than what the property would be valued at if you sold it with the kinds of fix ups people usually invest in before selling. A real estate agent may be able to help you with an estimate – but be sure and tell him or her that you’re looking for a quick sale, as-is valuation.</p>