Welcome to passive real estate investing the show where busy people like you learn how to build

substantial passive income while creating wealth for the long term and now here's

your host Marco Santorelli. Hello, my friends and welcome back to another episode of Ask Marco, where I answer your

investing related questions.

Today's question is a simple one and a good one and it comes in from Anthony and he says,

hey Marco, my fiance and I plan to start working with your investment counselor as soon as we gather the capital

we need to get started, which I have later found out is getting close.

Question for you, what are your thoughts on reinvesting the cash flow you get from the rentals

into the stock market index fund. The index fund I want to do this with

returns about 13% a year, inception annualized. At service level it seems like a great way to milk more out of that money, but I'm not sure if my strategy is flawed.

To my understanding, depreciating tax law would allow me my cash flow to be tax deferred.

In the stock market, I'd be hit for long-term capital gains at around 20%.

Would it make sense to reinvest the net cash flow into the market in an attempt to increase my overall return on investment?

I'm 26 years old and our mindset right now is growth.

We have a goal to buy a lot of properties in the next decade. Thank you.

I did reply back to Anthony and he later sent me an email saying my fiance and I are working extra hours to get as much capital as we can

to get started on a good foot with rental properties so we've been busy as well. I've noticed that you already sort of covered my question in

your podcast on episode 177 which helped give me some good advice or guidance.

Appreciate all your guidance have a good one.

Okay Anthony good question so I don't think this is flawed advice at all what

you're doing is a good idea I mean if you can get a 13% return on the cash as you

save for your next property, that's a great way to go about it. Your cash is not sitting idle,

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