Start small and aim for properties that cash flow well, even after accounting for taxes, insurance, and repairs.Most importantly, keep taking action!

In order to defer all of the tax you must purchase a replacement property that is at least as much or greater than what you are selling for.

I could also see 15% corp tax and the whole no tax on tips thing.

Also, the tax benefits of the buy and holds help offset the increased tax consequences of fix and flips.

Owning makes money from cash flow, appreciation, depreciation on taxes and write offs for your taxes. 

So, instead of paying taxes on $50K, I'm paying taxes on only $21K. 

Has someone started like ME claims cashing out his 401K?

There are several different types of income in the US tax code.Two main types are “active income” and “passive income".Active income is money you earn from working, such as wages from a W-2 job or income from running a business.Passive income is money you earn from investments like real estate, stocks, or rental income from your RE portfolio where you earn $ without actively working.Normally, you can't use passive losses (like losses from real estate investments) to offset active income like your salary from a W-2 job.That is unless you are an RE Pro.The reality is, that Real Estate Pro status is just a filing status similar to filing married or jointly.And if you are a real estate professional you CAN use passive real estate losses to offset active income from other sources.To qualify as an RE Pro you must:1.

. $500,000 was tax free due to being married.  

My last Tax Deeded Property returned 233% ROI.