There is an economic term called diminishing marginal rate of return.

The cash flow is diminished by the REFI but it improves over time.

Additional beds or baths show diminishing returns.

But rehab eats up time, and our supply of that is rapidly diminishing.

Lower value home  in market that most likely has zero likelihood of appreciation (not an emerging market) P&I payment under 300/month, On the back of the term (30yr term but note is in the 15th and beyond year), therefore your collection of interest payments is diminished.

It will diminish the value of the property and buildings overall environment will be very different. 

I feel like there would be diminishing returns and that $1k increase seems unrealistic. 

VA loans have become even more flexible now that the 2008 crisis is diminishing into the background. 

I would imagine the cost of managing that property would diminish your returns greatly...

If you'd rather take the rate bump than pay the points, which most people do, assume 0.5 to 0.75 discount points (it varies daily, with diminishing returns in both directions) translates into 0.125% to rate.