You could just as easily use another income source, an ordinary checking account ("interest bearing" (* GUFFAW *!))

@Sheena Varghese For flips taking over a year, the IRS treats them as business inventory, so profits are taxed as ordinary income, not capital gains, regardless of the holding period.

I'm particularly interested in the following areas:* offsetting ordinary (w2) income with bonus depreciation (with cost seg) on RE investments as REP* 1031 exchangeI already read a lot on those subjects, but I still have questions, so I need someone with lots of patience to listen and answer my questions.Appreciate your help!

Especially with the favorable tax incentives offered to buy and hold real estate vs the ordinary income tax you'll pay on private lending.A 1031 exchange would allow you to indefinitely defer all of the capital gains tax you would have to pay, and instead use it to purchase better performing property/properties.

Whether I find a new tenant or not, the departing tenant moves out after 30 days and is treated like an ordinary termination, which means I process their deposit like normal and they can earn a good landlord reference.2.

Could that bite our REP in year 5 when a big pile of ordinary earnings income is realized (if they don’t 1031 and defer it)?

This is more tax efficient as the interest you collect would be subject to ordinary income (outside of an IRA, whereas in an IRA, there’d be no tax on this.

Most everyone that you've described or hope to reach is either an investor, an already learned and savvy buyer/seller, or a cheapskate, and that just doesn't fit the prototype of what the vast number of buyers and sellers are - ordinary people who just want a fair price on a house and to get in and out safely without having to learn the RE industry themselves or spend a lot of effort on the process.

Last year we created a masterclass for helping ordinary people become the Local Developer in their community so that you can be empowered to do your own deals.

I think when evaluating anything we should be critical of what is ordinary and what is extraordinary.