EP328: How to Turn A House Into A $15 Million Multifamily Real Estate (Tax Free)

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In this episode, we’re going to walk you through how one house can become the seed of a $15 million real estate portfolio—and how you can grow it tax-free.

Here’s the thing: most people think building wealth is complicated, like you need a finance degree or Einstein’s brain to figure it all out.

But that’s a myth.

Wealth is simply a result. And results follow rules.

As Daniel Priestley said, “Income follows assets.”

Read that again. Let it sink in. Because it might just change your entire financial life.

So instead of asking, “How do I make more money?” maybe the better question is, “What asset do I own that income is following?”

And for many of us starting out, the answer is: you’re the asset. Your time, your energy, your effort—it’s all you. Which means your income is tethered to your calendar.

But what if there was a better way? A legal way to buy real estate for the rest of your life—and never pay capital gains taxes again? Ever. That’s not just possible, it’s the best-kept secret for growing real wealth.

We’re Palmy and Nancy Kitti, sisters and business partners who’ve built a $400 million multifamily real estate portfolio by living one truth: income follows assets.

And now? We’re sharing the playbook.

Here’s how we scaled by not just buying and holding—but buying, growing, and trading up. And thanks to Trump’s Big Beautiful Bill, this wealth-building strategy is more powerful (and permanent) than ever.

In this post, we’ll show you:

NO. 1 How we keep acquiring bigger, better properties—without ever cutting a check to the IRS

NO. 2 The real-world system behind our growth (it starts with one house)

NO. 3 And how we turn each investment into a legacy that lasts for generations

Let’s get into it.

The Never-Ending Property Acquisition Game

Think of real estate like Monopoly—only with a twist. You start with Baltic Avenue, right? Instead of selling and paying taxes when it appreciates, you trade up. Over and over again. That’s the magic of the 1031 exchange—a game-changer tucked into the U.S. tax code.

Here’s how it works:

• Swap one investment property for another, tax-free
• Trade up in value to grow your portfolio
• Use deadlines (45 days to identify, 180 to close)
• Let a third-party hold your funds—so you never touch the cash

This lets you scale from that first little house into multi-million-dollar properties—all without paying taxes along the way.

The Real-World Wealth Multiplication System

Let’s say you bought a house for $200,000. Ten years later, it’s worth $500,000. You use a 1031 exchange and roll that into a $2M apartment building. Your rent goes from $2K/month to $20K/month. That’s 10x cash flow.

Add a cost segregation study and bonus depreciation, and you can write off $400K–$700K in year one. That’s tens (or hundreds) of thousands saved on taxes. It’s like getting paid to invest.

And instead of worrying about paying back depreciation later, you just… trade up again.

The Infinite Loop Strategy

Once you’ve got a trophy property (think: Class A, great location, long-term potential), you tap into the Infinite Returns Loop.

As value rises, you refinance and pull out equity—tax-free. Rinse and repeat. All while your tenants cover the mortgage.

Over time, one building gives you tax-free equity checks every few years plus ongoing rental income. And because you never sell, you never pay capital gains.

The Legacy Play

Now here’s the full-circle moment: estate taxes.

For years, families lost fortunes paying taxes on what was already taxed once (or twice). But now, thanks to the $15M exemption in the Big Beautiful Bill, you can pass properties on without your heirs selling everything just to pay the IRS.

You get to protect your legacy—and pass down a thriving portfolio.

Wrapping It All Up

You started with one property. You used 1031 exchanges to grow. You tapped into refinancing to fund your life, tax-free. And now? You’re setting up a generational portfolio that keeps growing, even when you’re no longer here.

That’s not just real estate—it’s legacy-building. And it’s all within reach.

Want to know how to avoid the biggest mistakes that can derail this whole strategy? Watch the next episode. We’ll walk you through every pitfall—and how to sidestep them with confidence.

Let’s build a life—and a legacy—you love.