Probably similar appreciation in Silicon Valley areaContrast that with my Indianapolis metro area rental, nice suburb, highly rated schools.

In this market, with interest rates and prices at where they are, they're usually not viable (i.e. don't cash flow).

If the cash-out refinance option isn’t providing enough liquidity, you could also consider a hard money loan, though these tend to come with higher interest rates and shorter terms.

Unfortunately this market doesn’t appreciate that quickly, but I possibly may do that in 2-3 years depending on the market, debt pay down and the interest rates at that time. 

My big question is around the occupancy rate.

Rents continue to climb as well but likely not enough to keep up with increasing monthly mortgage payments when considering interest rates and soaring property values.There are 2 main schools of thought when considering investing in an expensive market like Long Island.- Robert Kiyosaki, Grant Cardone, and similar thinkers believe its best to invest in markets with higher cashflow while renting where you want to live.

The key is to analyze occupancy rates, seasonal fluctuations, and what type of properties perform best.

If their interest rate is 4% on those, then they are “making” the equivalent rate of return (4%) as the DST scenario you outlined above.

About 50/50 success rate. 

Quote from @Jimmy Lieu: Quote from @Andrew Syrios: The BRRRR strategy is tough these days (I even wrote an article about it that goes into more detail a little while back: https://www.biggerpockets.com/blog/beyond-brrrr-taking-advan...)In short, high interest rates as well as labor/material costs makes it hard to buy a property with debt and cash flow.