Turning Negative Cash Flow into an Opportunity

Turning Negative Cash Flow into an Opportunity

Negative cash flow happens when rental income isn’t enough to cover rental expenses, forcing clients to use their own money to fill the gap. This is the situation for more than 80% of real estate investors.

It’s a frustrating situation, but it doesn’t have to derail a client’s investment plan.

With Cash Damming, investors can restructure how money moves to create both short-term relief and long-term tax efficiency:

1️⃣ Use rental income to pay down personal debt

2️⃣ Borrow to cover deductible rental cost.

3️⃣ Maintain accurate, CRA-ready tracking

Now imagine this from your client’s perspective;

instead of draining their own savings each month, they’re managing negative cash flow strategically, with the tax benefit built in.

And from your perspective as a CPA, this is the kind of proactive advice clients remember and pay more for. You’re not just reporting on the numbers, you’re giving them a real solution that reduces stress, saves taxes, and keeps their investment plan on track.

As Martine from ARC Mortgage, I partner with Vancouver CPAs and investors to identify these opportunities and set up compliant Cash Damming structures that work in real life.

📩 Send me a message if you’d like to review how Cash Damming could support your clients, especially those dealing with negative cash flow or rising interest costs.