Hi, We have a PPOR with 190k owing, and an IP with a LOC we currently pay all IP running costs, including the mortgage out of. We are sorting ourselves out to debt recycle through an offset account attached to our PPOR, as has been discussed in many threads here. I understand the first part, putting all income into the offset, and then drawing out the equity through repaying the PPOR loan. I am confused about how to use this in conjunction with a LOC for running costs with a negatively geared property. Currently, we have been putting rent and tax return for this property straight into the IP LOC. If this income goes into the PPOR offset instead, how exactly does it end up back in the IP running cost LOC? For example, after year one, we put 25k rent and tax in the offset, reduce the PPOR loan to 170k, and what happens to the 25k then? We need this back in the existing IP LOC to cover costs, as our LOC after one year no income gets close to maxing out. We do not want to increase the IP LOC, just add funds. I seem to be missing something pretty basic in my thought process, would really appreciate someone who uses debt recycling explaining what I am missing! Thanks very much.