And so, if the rental income you receive from your business – your rental property, in this case – is yours to do with as you see fit, let’s make it sweat.
All these years, you should have been applying these rental receipts of $2,000 per month as a prepayment against the non-deductible mortgage of your principal residence – the mortgage on the house in which you live.
A monthly $2,000 prepayment of the mortgage?
You will see that non-deductible mortgage eliminated in record time. Extremely powerful.
But what about making the mortgage payments on the rental property, you ask?
If you have the appropriate financing on your principal residence, you can get back at that $2,000 to service the rental property mortgage.
You will have immediately converted $2,000 of non-deductible mortgage debt on your principal residence to deductible debt. Now you’ve generated a tax refund you otherwise would not have received (increased cash flow for yourself) while on your way to getting rid of that expensive mortgage in record time. The sooner you are rid of that mortgage, the less you will pay in interest. And less is better. Much better.
The Cash Flow Dam requires no new money and no new resources of any kind from you. The benefits are free and accrue as a result of reorganizing your finances, just like wealthy people do.
Make Your Money Work More Than Once

Written by Matt Parker
Updated over 2 years ago