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.

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

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.

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

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.  

CA in particular would extract a nasty tax on the gain side.  

.- I have not done a brrrr since the rates increased in early 2022 because in my market they bleed cash after I perform a refi to extract some of the value add

Would it make sense to invest in improving my home, then refinance with a bank to extract the created equity, and then use that money to purchase a rental property?