A Roth conversion inside the Solo 401(k) also works — you’ll pay regular income tax on the conversion, but future gains grow tax-free, and the IRS doesn’t apply UBIT to Solo 401(k) accounts.

When buying SFR's in a turnkey BTR in an ordinary neighbourhood, you have multiple ways to exit.

Ok, you have $5,000 of taxable income, at ordinary rates (the bad kind).Oh, it's completely worthless, you say, like $0 value?

Starting with flips to build capital and then moving into buy-and-holds makes sense, but you could probably get into long-term rentals now if you find a property with potential that just needs minor improvements, especially if you’re balancing a full-time W2 job.From a tax perspective, the main thing to understand early is that flip income is taxed as ordinary income, not capital gains, since it’s considered non-passive business income.

My guess, without knowing exactly where you're located or what your local market is like, is you could refi this, use the funds to invest in two more properties, and keep around the same cashflow, but you'll then have three streams of cashflow that are growing and three properties that are appreciating.

That being said, capital gains are taxed at a different rate than ordinary income, but they can still only be offset through non-passive losses (which includes capital losses).A Securities Backed Line of Credit (SBLOC) allows you to take low interest loans from your brokerage using your securities as collateral.

Happy to connect.There are also several ways as mentioned above to make the most of your tax situation as you grow your portfolio.

is the extra $ from private lending really gonna be a big difference than putting it in a CD or the markets (ordinary income vs.

From a tax perspective, here’s how I’d look at it:If you flip it right away, you’ll likely face short-term capital gains if held less than a year, taxed at your ordinary income rate, which can be pretty steep.

If you flip or wholetail, your profit is taxed as ordinary income, so you’ll pay higher rates and possibly self-employment tax.If you hold and rent, you’ll get depreciation, interest, and expense deductions that can offset rental income and lower your overall tax bill.