The oil fields and pipelines and refineries have the extraction and distribution capacity to deliver products (oil and natural gas) that are and will continue to be in demand.

I do not consider owning residential RE to be passive but can produce great ROI (we historically achieved the infinite ROI because we extracted all of our investment).  

(https://opensource.com/alternatives/access)The nice thing is that you don't even need to be a geek to use a lot of this data nowadays - you can hire data slingers on upwork to extract and merge, and the send you a list that is your subset (ie all SFRs in Dallas county at least 25 years old, less than 3k sq feet, last non-zero dollar sale at least 15 years ago, assessed at 300k or less, etc)GIS data for Dallas: https://dallascad.org/GISDataP...There is much more, but this is a start… best of luck!

Since I'll be pretty close to 70% on the hard money, I expect not to be able to extract any cash on the refi.Jon

I extracted $200K on the refi and it now has some cash flow.

Without a bank participating, the transaction avoids the cost of mortgage or discount points, as well as origination fees and a host of other charges that lenders routinely extract during the financing process.

As of this month, all of our BRRRR properties have had all our initial investment extracted.  

Although it is somewhat more complicated than calculating the weighted average cost of capital (WACC) of a firm, there are several methods that investors can use to find an appropriate capitalization rate, including the following:Build-up methodMarket-extraction methodBand-of-investment methodReal estate valuation is often based on strategies that are similar to equity analysis.

Also keep in mind that you don't have to partner on a deal with an investor to extract value from them.

We lowered our rate on every property, and extracted som equity at the same time.