Updated over 8 years ago on . Most recent reply
BRRRR pulling out income strategies
Hello all, I am a new real investor investor following the turnkey BRRRR approach. I have a successful IT consulting business that has and will hopefully continue to allow me to purchase rental properties with after tax money.
With all that being said, I understand the model is about purchasing properties, refinancing, and going back to purchasing more properties. I have heard from different people that one should never pay taxes on real estate income, but how is that being done? I understand one way is utilizing depreciation to lower my active income's taxes, but when are people pulling out salaries to utilize in their non real estate life. Do most people BRRRR until they can quit their first jobs?
I have a few expenses coming up like college tuitions for two kids (perhaps even grad schools) that I know i have to budget for, and the BRRRR approach seems to me the best route for that, and plan for my eventual retirement.
Sorry for the newbie questions. These forums are amazing.