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Are you a real estate investor looking to increase your cash flow and generate tax-free income? Then consider this innovative strategy for creating income through rental property refinancing. It involves purchasing a rental property every year for 15 years and putting each of them on a 15 year fixed rate mortgage. On the 16th year, your first rental property will be fully paid off. You then refinance that property, pull out the equity, and use that cash as your income for the year! Read on to learn more.

How Does It Work?

The concept is simple but extremely effective when done right. Every year, you purchase a rental property and put it on a 15-year fixed rate mortgage. By the 16th year, your first rental property will be paid off in full. You can then refinance that now debt-free asset and pull out all of the equity—which is tax-free—and use it as your primary source of income for the following year! From there, you’ll repeat this process with each successive asset until all 15 properties are debt free and creating steady streams of passive income for you.

Advantages Of This Strategy

This strategy offers several advantages over other forms of real estate investing. Firstly, it allows you to generate steady streams of passive income over time without having to purchase additional properties or wait decades for them to appreciate in value before selling them off at a profit. Secondly, since refinancing money is tax-free, this also helps reduce your overall taxes owed while still allowing you to reap large dividends from your investments. Finally, by utilizing 15-year fixed rate mortgages instead of 30-year ones, you’ll be able to pay off each asset much faster than if had chosen longer loan terms—thereby reducing your overall interest payments and increasing your returns even further!

Risks To Consider

Of course, there are risks involved with any investment strategy—especially one as complex as this one. Firstly, getting approved for multiple loans in quick succession can be difficult if not impossible in some cases due to stricter lending rules imposed after the 2008 financial crisis. Additionally, rental properties often require significant maintenance costs which must be factored into the equation when calculating potential returns on investment (ROI). Finally, economic downturns can lead to lower rents which may make repaying loans more difficult if not outright impossible during such periods.

As with any investment strategy there are risks associated with this one; however they should not dissuade potential investors from giving it serious consideration given its potential rewards. With careful planning and disciplined execution this method may prove extremely profitable over time while simultaneously generating steady streams of tax-free passive income! For those who have been searching for an alternative way to invest in real estate beyond buying low and selling high then look no further; this could very well be just what you’ve been waiting for!