buy income property

I would never have had the guts to just buy a house I was not going to move into. But I had a condo I had to move out of, and the market was low so I rented it out.

That worked pretty well, but I didn’t want the condo. So when the market went back up, I sold it on a 1031 exchange, meaning, I bought a different rental property.

It was a big search. Initially, I thought about a cottage on Orcas Island, but the rental season there for the most part is confined to summer, and that would not have worked. I needed something that would be a year round vacation rental, where I could think aout eventually living.

On a lark, not because I thought it could happen, I searched real estate in Hawaii. To my huge surprise, I found several places that seemed like they could work out.

We went over to look, with a beach house in mind, and ended up with an upcountry house in the rainforest. It has been a happy investment. I have a very good property manager, and at tax time it is really good.

Well really, we all know that the richest people in the world and throughout history didn’t get it by working deadend 9-5 jobs. Buying property that you can rent out or fix up and then sell…well now we’re talking real money aren’t we? The beauty of it is, if you are buying property and renting it out, you can form a corporation for the purpose of tax advantages.

Instead of doing this:
Work -> Get Taxed -> Spend

You do this:
Work -> Spend -> Get Taxed

Meaning that you are only taxed on whatever is left, instead of getting taxed first. This means that through your corporation, you can write off all sorts of every day expenses as business expenses and when tax time comes, you pay a lot less in taxes.

Anyways, bottom line is. Your ass is gonna be poor if you don’t own income property or have other forms of income producing assets.