Financial side of real estate
Just like many of you here, eventually I would like to own several properties and eventually be able to live off of them. One of the things that I have been told is to make sure I do not touch my principal. Can someone explain what that means and how do you do that?
Real estate investing is considered to be passive income. But if you are living off the income from a building does that become active income and does that mean you get taxed at a higher rate?
I appreciate any answers.