The big question is how much is owed since the reverse mortgage is designed to extract equity from the property over time.

It's not an investment.2 ex-homes and my current home say otherwise:Appreciated over $600KAppreciated about $500K and cash flowing very nicelyAppreciated about $300K and still living in it.Note: Each of them have had money extracted and re-invested so that the returns from these gains far exceeds the gains alone.I agree that if your home in a tradition zero appreciation market (implying appreciation is not historically greater than inflation) then your home is likely not an investment (you still get equity paydown and someone else is not cash flowing off of your rent). 

I share the views of  @Elizabeth Colegrove , @Heather Jones , @J Scott and the views of Grant Cardone >Here's an extraction of the transcript about what Grant Cardone has to say about business plan.

I will state that I believe it is very challenging using this approach that if you paid market value to be able to extract all of the investment. 

If I have to pay taxes of 40% on cash flow but nothing on the appreciation (even extracted appreciation), then the cash flow only provides 60% value compared to the value achieved from appreciation.

I legally extract everything I can from the trashers and I get and renew judgements, to warn others about them.When my brother and I were young investors we made the mistake of doing business in a war zone and our "rent enforcers' were very effective, so we didn't lose money.

We extracted all of our initial investment out of the property via a refinance around 2 years after it was purchased.

Hi, @Simon Aristizabal,Here's little different take on private money...One of the leaders of my local investment group does this:He uses private money to acquire and repair the property (short term - 6 months or less), then does a conventional or some other form of refinance to pay back his investors and extract his profit.

That’s already in place for other platforms and is a logical next step for Airbnb to extract additional $$$ out of hosts.

This is nothing more than a scam, designed to extract an up-front fee from you and likely your personal financial information, which also has value.LinkedIn, Facebook, Craigslist, Connected Investors, and most other online sources are cesspools, Dixia.