We are getting a terrible return on our equity but I guess that happens when you are hovering around a 50% global LTV. 

For my partner and I, it’s a question of effort vs return.  

Getting a loan to payoff another loan with a lower interest rate doesn't make any sense. we do private lending and can get double digits returns consistently.

For example I sold 2 properties in the same town that was more than 30 minutes away, just because of the travel time to get there and return. 

As I invested a few years back, my returns have been pretty good with cashflow and appreciation. 

Another note on construction cost, going vertical is very expensive now and would require have a great connect with a developer and a builder in the area.See what rents are in the area and run the numbers to ensure the rents will cover your costs and give you a solid return—using the 1% rule can help.

Leverage magnifies return. 3) The effort involved in adding an ADU is comparable or larger than a rehab associated with a BRRRR.

I expect my cash on cash return to be over 90%.

We sell the property and each side get their money returned off the top then we split the profits 50/50.

What happens to the 'comparable value' if the area is uninhabitable or a community that won't return for years?