Would this large amount not negate any potential savings you would have over the course of the next few years?

The reason I say this is to lead into the answer from your question. 

I didn’t respond to your negative post to win an argument—I replied to encourage him and others not to give up on a dream just because one person may feel it’s not achievable.Listen, have you ever considered that maybe you and even a few others may be wrong?

If I take out $200k, that property  will have a negative cash flow of $500, but the overall portfolio will still cash flow positive and I’ll have capital for another purchase.

In the current environment, my under writing (that most would consider to conservative) depicts large negative cash flow after a maximum LTV refinance.- cash out refi loans have higher rate than if cash out was not occurring.  

The negative equity position is one reason (there are many reasons) why adding an ADU is one of the worse RE investments.  

Why is the 50% rule so negative while the cash flow is positive?

You can learn to do this independently or get a rockstar REALTOR to lead the way.

Doing a LTR would likely be a negative cash flow. 

We are in the DC area and I have never heard negative comments about them.