Cash Flow Dam Explained | Tax Strategies | Real Estate Investing Canada | Steve Tsonev

Mar 25, 2026

Cash Flow Damming Explained | Turn Your Mortgage Into a Tax Deduction

Real Estate Investing Morning Show – Hosted by Wayne & Gabby Hillier

In today’s episode, Wayne and Gabby are joined by Steve Tsonev from Finngo Bookkeeping & Tax to break down one of the most powerful (and underused) tax strategies available to Canadian real estate investors: the Cash Flow Dam.

If you’ve ever wondered how to turn your biggest personal expense into a tax deduction, this episode walks you through exactly how it works, when it makes sense, and how to implement it properly.

 

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🧠 What You'll Learn in This Episode

• What the Cash Flow Dam (cash damming) strategy actually is and how it works
• How to convert non-deductible mortgage interest into deductible interest
• Why this strategy can save investors hundreds of thousands of dollars over time
• The connection between the Cash Flow Dam and the Smith Maneuver
• How rental income can be strategically used to accelerate mortgage conversion
• The importance of having the right mortgage products (readvanceable HELOC)
• Common mistakes investors make when implementing this strategy
• Whether this strategy still works with basement suites or multiple properties

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👥 About Your Hosts

Wayne & Gabby Hillier are full-time real estate investors and coaches based in Edmonton, Alberta, Canada. Through their REI Masters Mentorship Program, they help Canadians build long-term wealth using rental properties, BRRRRs, flips, joint ventures, and creative real estate strategies.

New episodes every weekday morning featuring real stories, coaching moments, and tactical investing advice.

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💡 Resources & Contact

Learn about our Mentorship Program:
www.reimasters.ca

Bookkeeping & tax help:
www.finngo.com/rei

Submit a question:
[e-mail]

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🤝 Thanks to Our Sponsors

🏠 Calvin Realty – Edmonton Investor-Focused Realtor
🌐 calvinrealty.ca
🔗 Facebook

📊 Finngo Bookkeeping & Tax – Investor-Focused Accounting Firm
🌐 www.finngo.com/rei
🔗 Facebook

💼 Kirkwood & Brennan Mortgage Group – Investor-Focused Brokers
🌐 www.kbmortgages.ca
📧 [e-mail]
🔗 Facebook

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🏫 Edmonton Real Estate Investing Course

Thinking about investing in Edmonton but not sure where to start?

Our 8-week Edmonton Real Estate Investing Course gives you a clear blueprint to invest with confidence, including:

🔹 Why Edmonton is one of Canada’s strongest cash flow markets
🔹 The economic drivers shaping Edmonton’s growth
🔹 How to analyze neighborhoods for cash flow and upside
🔹 The five main asset types and how they perform
🔹 Tenant selection strategies that protect your returns
🔹 How to buy rental properties that actually make money

👉 Learn more and register at:
www.reimasters.ca