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Ah I see, it's the higher yield that makes the difference. Of course. Thanks

Now that I think about it, there's something about this cashbond trick that I don't understand. So you have 100k saved, or from equity in a LOC. You use that to buy cashbonds which returns you roughly 20k a year. That 20k a year boost in income gives you roughly 5x borrowing power, which is...

Ah I see, this is the part I missed. I thought they simply paid interest, and then would return you some of the capital at the very end, which is why I was confused.

You mean interest on the LOC? Yeah it would cancel each other out which is why I'm confused, because isn't this the same thing? The only difference I can think of is maybe bank interest can't be counted as income?

I'm curious about this too. Also could you draw that 100k from your LOC, stick it in another bank account and claim the interest earned on that as income?

Assuming that you've already shopped around and you've really hit your borrowing capacity limit like I had, these are a few things that I did. Firstly I cancelled all my credit cards (30k worth), I then put my girlfriend on our lease which technically cuts my rent in half, so $1000 a month). And...