Most small real estate investors, landlords, will either break even or report a loss for tax purposes with their property. But they're actually generating positive cash flow because maybe the rents are greater than the expenses like utilitys and your mortgage. You can deduct some of those losses against your regular salary. And then there's this whole thing about the ten 31 exchange, in which you don't have to pay taxes on that if you roll it over to another property of equal or greater value. It's itsenormous benefit. Just stay on taxes a little bit more.

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