One Rental At A Time Borrow Until You Die Strategy (IRS Does NOT want you to Know About)
Jan 24, 2026
Controversial strategy of keeping mortgage debt to boost multigenerational wealth. Using refinances to pull cash and buy more properties. How heirs can benefit from stepped-up basis and avoid certain tax hits. Treating banks as partners for asset protection and leveraging tenant-paid mortgages to fund growth.
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Debt Worship Obscures Leverage's Power
- Many people worship being debt-free without understanding how leverage builds scalable wealth.
- Strategic debt can multiply net worth far beyond what cash-only investors achieve.
Refinance To Reinvest, Not To Spend
- Do pull cash out of low-LTV properties to buy more appreciating assets with leverage.
- Reinvest borrowed funds into income-producing properties rather than consumption.
Stepped-Up Basis Makes Dying In Debt Tax-Efficient
- Heirs receive a stepped-up basis when an owner dies, often eliminating capital gains and depreciation recapture.
- Dying with leveraged assets can transfer far more value to heirs than dying debt-free.