Minnesota is packed with natural beauty and unique tourist attractions.As someone new to the investment world, this trip got me thinking: what about investing in glamping or Hipcamp-style properties?

Problem is only "RE pros" get to do it.There are 3 income classifications in the US - Active, Portfolio, and PassiveActive income is income derived from your job, or normal trade or business.Portfolio income is derived from bank instruments - stocks, bonds, etc.Passive income is income earned from investments.Active losses can wipe out both passive and portfolio income, but it doesn't work the other way around.Portfolio (capital) losses are limited to $3,000 annually.Passive losses can only be offset by passive gains.Real estate rental income by its nature is deemed passive per IRC Sec 469One way to get around it is to become a pro - spend more than 750 hours or 1/2 your time in real estate.But most folks aren't real estate pros.

Normally, as properties appreciate and mortgages are paid down, equity naturally builds, and at some point, your ROE will be lower than the return you could achieve in another investment.

That’s just not the nature of the market anymore.For most people, I’ve found that the best strategy today is a long-term house hack—either a small multifamily or a single-family home that you live in first and eventually turn into a rental.

Also the other Gentlemen north of me who post a bunch I know he has lake from on lake Coeur d' alane  which is a spectacular mtn lake with crytal blue water and at least it used to big big trout :)We really don't have any natural lakes down here.

BRRRR is a natural next step from flips, and combining both can create a strong pipeline of equity and cash flow.

They’ve designed stuff I’m familiar with locally that was so energy efficient it didn’t require a furnace, totally utilizing the Earths natural heating.

But they’re still price sensitive, so if your place isn’t reasonably priced for what it offers, don’t be surprised if you get skipped.Meanwhile, rural and nature-based markets remain strong.

This happened near me in weeki wachi - a small market known for natural springs made it on AirDNA list a few years back and it went to hell quickly. 

Defer then die  (muuuuuuuch later and naturally) 💪🏻 Great way to pass on tax free wealth to your kids 👧