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. 

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.  

However if I do a BRRRR I can achieve infinite return by extracting all of my investment.

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.

Lots of valuable nuggets to extract for a newcomer such as myself.  

It needs to be stopped now before some form of this arises in the so-called metaverse, where tech titans want to shift the entire economy over to so they can extract profits and not be responsible for any of the negative side effects.

The seasoning can impact when you can extract the value add which can impact when you can start the next effort.  

The issue is that after a high LTV refinance to extract the value add, the property is large cash flow negative.  

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.

The issue is in my market, and most other markets, the property is cash flow negative after the as high as possible LTV Refi t extract the added value.