If I perform a value add to create sweat equity and extract the added value, I do not pay the taxes when the money is extracted.

However if I do a BRRRR I can achieve infinite return by extracting all of my investment.

I am of Greek extraction and speak in a decidedly non-local accent, while my wife is a Russian immigrant and speaks with a foreign accent.

When a person finds a real goldmine and can prove the nuggets are really gold and simple to extract then every fool in the world will throw money at you.

I have done quite a few BRRRR in San Diego (8 to be exact).  9 of our properties have had all the investment extracted.

I would be real interested to see your pro forma that conservatively projected a $2K cash flow and what market at your investment point.At 90% initial LTV, you would need outstanding value add or outstanding appreciation to be able to extract any significant amount of capital.House hacking you can get 96.5% LTV and therefore your saved money should be able to purchase nearly 3x value property local than you vacation home loan plan.Which is better? 

If the appraisal is complete on the property you're refinancing, ask your lender if you can dispute the value with additional comparable sales to see if you can get a higher value to extract more equity. 

It is similar to the work of a BRRRR, but due to no likely extraction of investment the returns are far worse.Good luck

Okenwa, but due to external economic factors including civil unrest in Eastern European countries and the market dynamics of oil extraction and shipping expenses, we need to raise the price of gas by a factor that allows us to remain competitive and offset an increased cost of logistics and labor."

The downside with this strategy is that it's not always completely as passive as they make it out to be, and the value-add on the property has very often already been extracted by the turn-key company.2.