Somebody should create a way for that money to be invested and benefit the renter whose capital/ sunken investment it is.

I believe you were right he would inherit your cost basis, so he would owe capital gains.

Honestly seems like a little overkill on this decision - unless its strictly a rate-term refinance because rates have dropped, it usually just should come down to a side by side comparison of status quo vs. refinanced (+ how any cash-out capital is deployed)

Excellent insight showing just how ridiculous this “don’t need capital, just drive for dollars” nonsense is. 

Often times, those are not deals with large capital demands.

There are a lot of moving pieces with that strategy, so having someone who understands how to properly track expenses, capital improvements, and refinances is key.

Where are you in the capital stack?

While it's exciting to cash in on a successful investment, the looming capital gains taxes can significantly cut into your profits.

It's a faster way to build up capital. 

.🔴 Over-leveraged finances: Borrowers with excessive debt or insufficient personal capital invested in the deal could pose a greater risk of default.🔴 Questionable property comps: Overstated market values or inappropriate comparables may mean they’re inflating expectations.As always, thorough due diligence is your best protection.