Massive passive income - NOT !!

[Bill Schrimpf]

I love contradiction.

I've listened to most BP podcasts.  Just about every guest says, one way or another, in the famous 4, the key is getting going is to do something.  

Many types of income from real estate investing is passive by IRS standards. As most podcast guests point out and every pro I've talked to says, REI is not passive. Is REI as demanding as your day job, probably not, but it sure isn't passive.

Thank you IRS for the lower rates and befuddled masses.

[Chris Martin]

Buy/hold REI is very friendly tax wise. It is a passive activity from a tax perspective. A passive activity doesn't imply there is no work. Regarding "Is REI as demanding as your day job, probably not..." If you are a rehabber and contribute labor (as in are field service manager for your multi-manager company) then REI is way more physically demanding. It's more than any other job I've had. It can be more mentally demanding as well. And for many, it is your day job. It is for me. The IRS (via congress) has created enormous tax benefits for buy/hold REI types. Take away depreciation, REITs, 1031 exchanges, etc. and you'll see a massive industry correction.