I also don’t feel we would be properly leveraging our money when I can take the equity out, buy a property, avoid the tax as it isn’t income, and have someone else paying the mortgage down while I build my portfolio.  

My problem is not so much with the high property tax, as you can still make money if you buy the house right and the rent is high enough (and that is the case in many houses.)

Unlike passive rental income, the income from an active trade or business is subject to self employment tax (a nasty 15% tax commonly referred to a "social security and medicare" by working folks).

Unlike passive rental income, the income from an active trade or business is subject to self employment tax (a nasty 15% tax commonly referred to a "social security and medicare" by working folks).

And if I was a competitor I sure would switch to this.. some brick and mortar do this like Dave Smith in Boise  he kind of pioneered this.. he beats anyones price and people come from all over the US to buy from him... just pop on the Tesla site and check it out.. very cool.This will also keep benefiting states with no sales tax as well  Like here in Oregon half of the 1 to 3 million dollar motor coachs are built and sold in this state.. and airplanes are sold in this state as well and hangered here for some time before they go to their end destination.. sales tax on a 1 million dollar mortor home or a 10 million dollar jet is real money.

Plus I'd have to pay the depreciation recovery tax as well (although I'm not too worried about that).

Yvette, early distributions from an IRA will be subject to state, income and federal tax, as well as penalties.

You would be creating business income subject to self employment tax as a contractor and reducing capital gains for the same amount.

Unlike passive rental income, the income from an active trade or business is subject to self employment tax (a nasty 15% tax commonly referred to a "social security and medicare" by working folks).

Tax court is littered with the corpses of developers who tried to 1031 their development project and got stung with ordinary tax as inventory.