Snowball Strategy Cashflow Help

[Maen Dabat]

Hello,

Newcomer here!

With regards to paying off a mortgage using the snowball method, I am a bit confused with how the calculation of the cashflow after the first property is completely paid off. As per the method explained, the value of the monthly mortgage that you are no longer paying for the first property is now being used as part of the cashflow to pay off the second property. However, wouldn't the cashflow from the first property be the rent acquired minus the monthly expenses?

For example:

During mortgage: 
Rent: 1,000
Expenses: 300
Mortgage: 500
Net: 200
Yearly cashflow: 2,400

Without Mortgage:
Rent: 1,000
Expenses: 300
Net: 700
Yearly cashflow: 8,400

The way the strategy is explained, the cashflow is now increased by 6,000 (500 x 12 months).

However, in this case, wouldn't the cashflow from the first property be 8,400 (700 x 12) and that value would then be used to add on to the yearly cashflow to contribute in paying off the 2nd property? 

Maybe I am missing something, but appreciate if anyone can shed some light on this!