I was on a webinar with my peer group awhile back and I was surprised that one of my peers moved his computer accidentally and it showed that he was in his kitchen. The surprise came is because I know roughly where his office is located, it is close to another of our group whom I meet with occasionally.
When I brought it up. He stated that he does still have his office, yet he seldom goes in any longer. Preferring to work out of his home.
Being the nosey PITA that I am I asked why keep the additional costs, if he was no longer utilizing the office.
He explained that he actually owned the building, not just his office. He owned the whole building and had the rest of the place full, filled with Doctors, insurance agents, and others. The office literally cost him nothing and the building was generating income.
Damn, that is almost as good and what I heard when I was younger.
I knew someone who bought their childhood home from his parents during college. He then rented every inch of space in the place, except for his bedroom to others.
Those others paid his mortgage, utilities, property taxes, insurance and threw off enough income to pay for college and spending money.
Once he got married, the house was paid in full and threw out his tenants. Once he and his wife settled down, he flipped the house to a bigger, more expensive home. This I believe was when you could offset gains with the purchase of a more expensive home.
long ago, a client and I were at one point looking at acquiring a large rental property. Unfortunately, this was before the housing collapse and everyone wanted a fortune for their property and were getting it. Unfortunately, is a misnomer, I am thrilled we did not grossly overpay for a property. After the bubble burst, I picked up a couple of smaller properties.
My investments pale compared to the two I mention above. At times, I wish I thought bigger and other times, I am glad I did not .