The Smith Maneuver
Turn your non-deductible mortgage into a tax-efficient wealth-building tool. Cash Damming accelerates your payoff by strategically converting home equity into deductible investment interest.
How to Implement the Strategy
While the numbers above show the potential, the true power lies in the monthly cycle of wealth conversion. Follow these five steps to transition your mortgage into a tax-deductible investment tool.
Leverage Your LOC
Use a Home Equity Line of Credit (HELOC) to cover rental property expenses—keeping your personal cash flow clear and strategic.
Redirect Rental Income
Direct 100% of your gross rental income straight to your primary mortgage to reduce your balance at an accelerated pace.
Tax Optimization
Because the HELOC funds are used for investment purposes, the interest becomes tax-deductible, lowering your tax liability.
The Savings Loop
Reinvest your tax savings back into your mortgage principal, creating a rapid debt-reduction loop.
Build Wealth
Leverage interest deductibility and reinvested savings to optimize tax efficiency and build your net worth over time.
Ready to build equity faster?
Schedule a strategic consultation to see if your current property qualifies for a Cash Damming or Smith Maneuver structure.