Tired of being priced out of the market? Perhaps the answer is to buy an income-producing property that you can live in, such as a duplex or triplex. The rental income could help pay your mortgage and enable you to qualify to buy a more expensive property.

Ideally, your wealth-building strategy might go something like this: You move into the property and own it long enough to accumulate equity through appreciation. Then you sell. You use the proceeds earned from the portion of the building that you occupied as a down payment on a single-family home.

You exchange the proceeds from the rental portion of the property into a larger rental that will have more upside potential, thereby avoiding capital gains tax.

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