If you can get considerably better than 3% on a new deal, it may make sense to extract that 200k and move it into a new deal. 

I mean, once we get off-market property and do some rehab, we can force appreciate it, but what about the later natural appreciation?

Always something new and cool going on in our market! 

It is perhaps my favorite meetup that is not associated with a larger group (such as SDRE, NSDRE, SDCRE).For the most part the lenders only lend on non owner occupied ADU, at low percentage of ADU addition costs because they know that usually the value extract will be significantly less than the ADU addition costs.  

It's the nature of investing in real estate. 

After reading this thread, a few comments come to mind over this common A or B decision.Without knowing how much it is (no need to say) makes my advice (or more accurately, my opinion) more general in nature but here it goes:Lending has very little to no tax shelters whereas buy and hold does.

Any amount over your adjusted basis in the property (initial cost minus depreciation) could be subject to capital gains tax unless you reinvest it strategically.2. 1033 Exchange (Involuntary Conversion): A 1033 exchange (involuntary conversion) is specifically designed for situations like fire, natural disasters, or eminent domain.

I'm conservative in nature, but am looking for the push to jump in at some point.

Naturally your old property must sell before you can take title to the new one, but it gives you a much better head start on the negotiation process of your replacement property.

Building rapport is one of my strong suites so the chemistry tends to flow natural.