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Rental Cash Damming

If you have one or more rentals, this strategy could help you be mortgage free sooner!

Cash Damming is a strategy to convert personal debt, whose interest is not tax-deductible, to business/investment debt, whose interest is deductible. This technique uses the cash flows from a rental property to gradually convert personal mortgage 
debt into more tax-efficient debt to cover the rental property expenses. This is achieved using the cash flows from the rental to pay down the non-deductible primary residence mortgage. 

​Talk to us today on how we can help!

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Tax Savings is the Win with Rental Cash Damming

 

The single most significant advantage is tax savings. 

 

Specifically, this approach allows rental property owners and investors to re-organize their cash flows more efficiently to: ​

  1. Reduce their primary residence mortgage. 

  2. Convert non-deductible personal debt to more tax-efficient business debt. 

  3. Apply the tax-deductible interest charges as new deductions against their income. 

  4. Generate free tax refunds and apply for them as additional pre-payments on their mortgage to accelerate their amortization. 

  5. Re-invest the savings to build additional wealth for their future. 

The Cash Flow Cycle​
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Take our full client Journey on Cash Damming 

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