Essential reading: Never-Before-Seen Records Reveal How the Wealthiest Avoid Income Tax

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46. We can all do this with our increased real estate equity ...

I only borrow against my equity when I'm purchasing another property.
Never for luxury items, like cars or vacations.
I put it down on a rental and let the tenants pay for my mortgage on that rental.

The risk is that the real estate prices drop below what you owe on the new mortgage.
So we have to be judicious on how we pull money out of equity.

My brother in Phoenix is sitting on about $500,000 in equity. That's crazy.
He could easily pull out about $400,000 and purchase about
10 homes/condos with that money. Then allow those rentals to increase in value.

The practice is to clear about $200 per door (i.e. per tenant). This is known as pencilling.
With 10 homes, he could easily pull in $2000 per month and watch
the equity build while the tenants pay off the mortgage.

In 30 years after all are paid off, he could be pulling in $10,000 per month
if rent was $1000/mo. If rent is $2000/mo. he would pull in $20,000/mo.
Who would need Social Security with that haul of income?