Would it make sense to invest in improving my home, then refinance with a bank to extract the created equity, and then use that money to purchase a rental property?

If an agent is involved your chances of having a meaningful conversation with the seller is limited. 

The meaningful relationships are earned by being a trusted advisor  who provides accurate information even if it means your client will be less competitive on that particular opportunity compared to the buyer who arrives at their purchase number based on bad advice. 

I would appreciate a meaningful conversation with an authoritative person on this topic, not in the forums.Can you address the decline of lead quality I and others are experiencing? 

Wholesaling isn’t my game, but I leverage my network to support others because their success is my success.Shifting the conversation to value changes everything.How are you creating meaningful connections in your deals?

You’ll need to experiment with these variables until you find a method that works.These days, I’m fully invested in Google Ads, which doesn’t require data extraction and allows you to pre-screen people.Additionally, to monetize the leads, you could make a deal with a broker to get a finder’s fee (they can split the commission, but only if you’re a licensed broker).

Once you have your permit from the city, they tend to ghost you and wont answer questions during construction or help in any meaningful capacity.

@Tony Thomas Even though it does not appear there are any meaningful tax advantages, I believe the lesson to be learned here is to focus on making business decisions that are best for the real estate and operation of that real estate.

That said, expect to deal with a fair amount of fluff leads.The two best strategies I’ve found are inbound methods: direct mail and Google Ads.Direct mail can be expensive, but it can also yield highly discounted properties.Google Ads, on the other hand, doesn’t require data extraction like calls, direct mail, or texting.

Instead of refinancing immediately, you hold out for rates to drop, which many economists predict will happen as inflation cools and market conditions stabilize in the coming years.Refinance when rates drop, extracting capital while maintaining cash flow at a similar level due to the lower interest rate.Repeat the process by redeploying the refinanced capital into new investment opportunities.This version of the BRRRR method is more of a long-term play, as opposed to the quick 6-12 month cycles many of us were used to.