Now your net is down to 15k (10% return) and mine is at 35k (14% return). 

But I know several people who made this mistake even after I warned them including someone who dumped 3M into a fund that promised to pay 10% return. 

Most people are refinancing a BRRR because they are in short term debt (like 12 month hard money used for purchase +rehab financing) or own the property free and clear (they bought all cash) and would get a higher return on equity by leveraging the property and reinvesting the cash out proceeds of the loan to scale the portfolio. 

They told me that they've rarely had a screen crap out, but if it does, they told me that I could buy a new one from them if I wanted, but could likely get a better deal from Costco and easily pop it in.

$500k would be enough to go out and buy something else leveraged that would potentially get you a better return.

This allows new investors to gain experience while minimizing risk and maximizing returns right from the start. 

If these homes were such great investments, they would keep them for their own portfolio.When you purchase an investment, calculate your returns based on actual performance.

This could have easily been replaced with code/AI.

And the values like all rentals will just track the rental rates and what an investor is willing to pay for a return.

Or if you want to swap higher returns for lower maintenance you can look in to FIG (fourplex investment group_.