Rixter, are you about? could you chime in from Geelong mate, i think you're using an LOC to pay interest and expenses and also having rental income credited to the LOC and capitalising the interest. is this correct?
Yeah I have a few LOC's used for Investing & Personal uses only.
All rents goes into them, with IP loan interest and expenses taken from them.
Any shortfall between rents going in and expenses including IP loan interest get capitalised onto the LOC balance for the month.
Depending upon what expenses fall due for that particular month, some months there maybe a shortfall and other months surpluses