@Gavin JexSo you want a bank loan and then seller finance as wellA bank would not be in second position so they as the owner / lender would be in second.Also 0% they would still be responsible for taxes on that at AFR so if your payment is $300/mo the loan would go off federal rates so they would essentially have to claim around $5k in interest income which would be ordinary income so they may end up paying all of your payment in taxes… just fyi if they did speak with someone on thisSounds like a steal if deal for you

@Steve K.100% agree which is why I am against people doing seller financingThey are investing in a security instrument that is typically over leveraged because they may sell a $200k home for $220k, and get 7-8% taxed at ordinary incomeI can invest in other investments and get 8-10% taxed as qualified dividends or get depreciation and have ltv’s below 70%… throw in these borrowers are typically not underwritten properly and have a high chance of failure and I scratch my head why people think this is a great ideaI think a lot will learn the hard way in the next 2-3 years

Having a property management business may be good if you want to have ordinary income which will allow you to deduct health insurance / retirement plan contributions.

We changed the windows and patio doors just a few months ago.

It's just that you will pay ordinary income rates rather than long-term capital gain rates.

Do I have to add those $45000 to my income and then I pay taxes and my ordinary tax bracket wiil be the $45000 plus my work income, do I get taxed twice?

I think the author was kinda over exaggerating to make a point to us ordinary folks that compounding makes us 'rich' but the real wealthy people did not become real wealthy via stock market but by founding their companies. 

Short term gains are taxed at your ordinary rate.Active income, though, is always taxed at your ordinary rate.

For instance, if the cash value exceeds the total premiums paid, the excess amount is taxable as ordinary income.Risk of Policy Lapse: If the policyholder cannot maintain premium payments, the policy can lapse, resulting in the loss of the death benefit and potential tax liabilities on the cash value.

@Ashish Acharya and @Dmitriy Fomichenko  thanks for the responses.Currently, we are using the schedule C plan to fund the solo 401k, however, income on Schedule C gets taxed as ordinary income, which is a huge hit.Follow my thought process here for a moment:I form a separate LLC taxed as an S-Corp, lets call it XYZ.