April 7, 2020

Buyers can improve their cash flow easily


Buyers can stretch their purchasing power with a simple change they often overlook. (Flickr photo by [email protected])


When contemplating the purchase of real estate, particularly in high-priced areas such as Manhattan, buyers often forget one useful way to boost their cash flow.

The omission pivots on how much of a tax benefit they can expect after filing their returns. 

If cash flow is a consideration, there is no reason for a home buyer to wait for that refund to arrive in the mail or bank account from the benefits of paying property taxes and mortgage interest (don’t forget points).

A self-employed individual can reduce estimated tax payments by dividing the anticipated refund into quarters and subtracting the result from each of four payments.

Similarly, a business’s employee can increase the number of deductions to reduce the funds withheld from each check.

Remembering the extra cash that can be available regularly is an excellent tactic for a buyer to stretch perhaps farther than originally believed. Not only is the technique perfectly legal.  It’s perfect in every way.


  1. Rarely, do I talk about this with a buyer who already knows about this possibility.

  2. Good point Malcolm. I suspect it will be harder and harder for the self employed to get homes in the future so they need to use every advantage they can get!