I'm very excited to talk to Will and Amy Buckholtz.
Welcome, guys.
Hey, thanks for having us. Yeah.
So we really wanted to have you guys on the show because
I think a lot of people have the dream of doing what you guys have done.
You've set up all these different side hustles specifically real estate
being one of the bigger ones, and that's turned into a property management business
and all these other things. Can we start there and then work out?
Oh, we got married in 2013.
We started renting right away an apartment and I'm a dentist.
So you're probably thinking, why is the dentist on your.
Well, I went down to Miami and I was taking a course
and there was a lot of young dentists in this course.
And there was one guy who was kind of off by himself, and this guy was in
his mid to late sixties.
And we thought, Wow,
this is so cool that you're
taking a dental course on implants this late in your career.
You must really love dentistry, right?
Well, it turns out he actually didn't he didn't even want to be there.
He was doing it because he had to.
And I thought that was just kind of sad.
I didn't want to be in that position
late in my career where I was forced to be working.
And that's when I learned about passive income and real estate.
And that brought us to actually purchasing a rental while we were still renting.
So rather than buying a house or something like that,
we actually purchased a rental.
And then using that cash flow, we used that cash flow
to start building duplex that we ended up moving end to end house happened.
Okay.
And then what made you exactly think like real estate is the angle?
Like what was what was that first initial step?
When I was when I was young,
my parents ended up getting a divorce and my dad actually moved into a duplex.
So whenever I look at these rentals, I think of myself and I think,
would I live there? Could I see myself living there?
So I do think it gives a little bit of a unique advantage.
I think it's really cool that
the both of you are renting and set up this is very unusual.
You know, instead, the first thing that you actually bought
was another rental, not necessarily a single family home to move into.
While we rent it for three years.
And then that process about we bought a duplex because we're
headhunting and we found someone that was signed a duplex that made sense.
We didn't feel like
we needed to move in for right away because the cash flow is so, so good.
We didn't want to ruin what was happening.
We kept it there.
And then I found opportunity to build the duplex.
We found land and I got my.
It's a funny scene to see me, my dad and my parents
building a duplex under four months, but he had recently retired
and I wanted to learn more about building because I've always been
interested in real estate, so why not start there?
You know,
you guys are at 58 doors right
now, so, you know, so it started with just that little duplex.
When you guys were renting, though, what made you guys on the same page?
Because I find a lot of times, most of the time that it just isn't the case.
So we met with a financial advisor early on who wanted to basically invest
into the market and kind of take all of our control out of it.
That just wasn't that didn't sit well with us.
We wanted to be in control, giving all that control away to someone else.
We both agreed that just fundamentally we did not want to do that.
We think we have a little bit more control than, you know, just kind of,
you know, going into the market and just letting someone else manage up.
There is a compatibility factor in play for sure, too.
I'm sure you have friends that have learned from you and are doing things.
What advice do you give them?
Really, if I was going to give someone advice
to get into it, I would tell them to reach out
to people that are involved in it and read books on it.
Listen to the podcast, listen to the YouTube videos.
And if you still have an interest after you've done all your due diligence
and you're still and you've done all your research, then jump right in
and give it a go.
But what we find is a lot of people just don't really want to have to do
the work that comes involved in real estate.
We both enjoy working.
If something breaks, Amy gets excited about it.
I mean, was not a fixed appliance.
Those she knows how to fix all this stuff, so she gets excited.
I have tons of friends that are dentists.
I have tons of friends that are on dental practices.
And one of the things that a lot of people may not realize is that they're among
the highest taxed having, you know, I mean, you can be in the 50, 60% range,
but the real estate, you know, the position, the cost, segregation,
the bonus depreciation, all the things that the government lets
you have as a result of owning housing, there are significant
tax benefits that can offset the high income earner.
Can you touch on that a little bit.
As a W-2 employee?
And if you are, you know, in that upper tax bracket, you can actually
you can actually do what's called a cost segregation analysis, which is what
we're currently doing on one of our 18 units.
And then that can be considered you know, you can you can do that
depreciation off of the gains that a W-2 employee is making.
So Amy is a real estate professional. I'm a dentist.
We can use the depreciation that she is doing with the real estate
against my gains as a dentist.
So everybody understands cost segregation means that you can take personal property
and let's just call it refrigerator's appliances
and you can accelerate the depreciation quicker so
than the normal property, which is in multifamily 27 and a half years.
So you can take you have to deduct the land
and then you can actually do a cost segregation.
You the basically the components and that increase is the called
a non operational expense and they can use that those losses
or were they call Noels or net operating losses and offset of the marital income.
And I think this is an important piece that most people don't know so
so will can go on slaying it as a dentist making all kinds of cash over here
and thank God for Amy and go over there like you know
in doubling their income almost well, not necessarily doubling it,
just keeping it from actually gone to the IRS.
That's a good question.
Well, do you own the building that you're practicing in right now?
That's one of the 58 doors that technically is 5050 with my partner.
But all the other units Amy and I own.
How can you explain to people listening
that maybe have their own business how buying the building helps, you.
Know, on the tax side, just like any other real estate property,
you can depreciate the building over time.
But what you can do is you can also pay yourself the rent and that gets
you can avoid some of the taxes by paying yourself that rent,
which is a really nice way of mitigating the taxes.
What you want is you want each asset that you have and it's own LLC
or a limited liability company.
You want them sitting independently because things
can happen with renters and slip and falls and all kinds of things.
You can get sued.
So you want.
What you want is you want all those into different LLC.
They're basically entities, legal entities that you put your assets.
And so so they're all broken up.
The pain of the bad is,
of course, is that you have to do tax returns for all those partnerships.
But they're all broken up, but they're all in dependent.
So the the dental office would be one of those partnerships.
And then Will and Amy, as
as renters would pay the partnership rent,
and then that rent would be the income for that one LLC.
But then you have a lots of expenses to offset it, including depreciation.
And so that becomes then a loss that offsets
Will's income, you know, as with as W-2 job.
But I'm sure you've made some mistakes with tenants along the way,
and I don't necessarily mean moving in a bad tenant
or maybe you've done that, but just mistakes in general.
So I think some people could benefit from knowing what those were.
Oh, there's all you always get through on some low.
There's always mistakes out there.
Pay attention to your gut because one mistake that din end up in an eviction.
But it took a month out of my time what they wanted to pay with,
you know, a cashier's check.
And I'm like, this is how we do it.
You take the money directly to the bank. It's deposit.
I don't touch it.
We're good to go.
And just them throwing little wrenches in your system that you put at play.
I don't.
And with the past one, with the cashier's check, they threw a wrench
in where I had already signed
someone a month, and they just said, No, we're staying for one more month.
And so then I had to find housing
for that other individual, and it just got chaotic.
But it was so great to have both you guys on.
I think you really resonate with people.