Refinancing isn’t an option yet because of the way we purchased it (unless someone has a bank that will look at the deal differently) our original plan was to pay off our balloon in early 2027 when it is due which the bank will treat as a purchase and then we would wait until we are able to refinance so probably 2028 and then we could pull out a good chunk of equity at that time.

Additionally, you may be planning on living in this future home for some time. 

If you plan to build your own primwry you absolutely want it to be your primary first not investment land first.

I’d love to hear more about your goals and how you’re planning to use your license to grow.Wishing you all the best on this journey—feel free to reach out if you ever want to connect or chat strategy! 

Remember this is a marathon......That said are you planning to flip, hold(short or long term?)

However, some investors don't mind this strategy if they prefer not to put a lot of liquid in up front and plan to refi out within a few years of closing (which seems to be a great option with the talks of the FED reducing interest rates this year).It really comes down to investing in a growing market, in a good neighborhood & building a great team to support you.

.: I just hired an architect to design and plans submit for ADU in my 8 multi unit to use the tuck under parking.Some people say do not try to be the general contractor as it will take way more time, costly mistakes and will be nearly impossible to manage with current work. best to hire a company that will do it all and cost about $250 per square foot.

Things like your vacations, entertainment, toys, food, clothes, housekeeping, pets, guns etc.

My plan is to buy the house subject to their existing mortgage, renovate the property, refinance it and pay off their remaining loan balance using the money from the cash out refinance.

With some proper planning and the funds to lock in materials early, you can have an efficient build, but certainly not fast.