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Updated almost 9 years ago,
Strategy Given I'm Not Looking for Cash Flow
I know a lot of folks on this site are looking for cash flow, but as a part-time REI I would strongly prefer capital appreciation (for cash flow in the future) because I have a good corporate job and want to minimize the taxes I pay. In the future I dream of semi-retiring/retiring fairly early, and at that point I would want to start pulling out the cash flow since I would likely be paying a lower tax rate on the income.
Are there any kind of legal entities/structures I could use that would force all my cash flows to be reinvested in REI business and thus minimize (ideally avoid) tax given that I don't need to take any cash flow from the property right now? Are there certain kinds of property that are ideal for someone who is not looking for cash flow now and instead of getting cash flow now get more appreciation in the future?