Let me show the numbers; please let me know if it makes sense:Property Original Value $10,000,000.00 Initial Finance $7,500,000.00 Investors Money (Downpayment) $2,500,000.00 Ipotetical foced Appretiation New Value $12,500,000.00 New Downpayment/Equity $3,125,000.00 Refinance Principal $9,375,000.00 Cash Out from Original Investment back to investors $1,875,000.00 There are some MF investors that hold the property with no plans to sell and keep doing refinancing, and this seems to be the model applied by Ken McElroy.

 Once a person lets earnest money  go hard, they become emotionally attached.If you find yourself in a situation, where there was something majorly different than what you realized, then it is my firm opinion that it is best to let the seller have your earnest money and take stage left.Remember, no deal is better than a bad deal.No, I have not always been the master of that particular principal.

Act as a Key Principal (KP) for loans.3.

Instead, the lender wants to see that the monthly income from the property can cover the principal, interest, taxes, insurance and HOA (if applicable). 

You will then have a few options with that rent money....you can put it into principal or you can start saving it to purchase yet another property.

Since I returned their principal investment and the profits in full, wouldn't I have been more akin to a investment broker who was acting on their behalf?

I'm a licensed broker, but would be acting as principal, so would welcome any introductions to any brokers that have off market opportunities. 

The 10 year affect of appreciation and principal pay down is crazy

. - RU-2, TWO-FAMILY RESIDENTIAL DISTRICT[19]SHARE LINK TO SECTIONPRINT SECTIONDOWNLOAD (DOCX) OF SECTIONSEMAIL SECTIONCOMPARE VERSIONSFootnotes: --- (19) ---Cross reference— Height of fences, walls and hedges in RU Districts, § 33-11; location of swimming pools in RU-2 Districts, § 33-20(c); maximum setback for principal residential buildings in RU-2 Districts, § 33-45.Sec. 33-201. - Uses permitted.SHARE LINK TO SECTIONPRINT SECTIONDOWNLOAD (DOCX) OF SECTIONSEMAIL SECTIONCOMPARE VERSIONSNo land, body of water and/or structure shall be used or permitted to be used and no structure shall be hereafter erected, constructed, moved, reconstructed or structurally altered for any purpose in an RU-2 District which is designed, arranged, or intended to be used or occupied for any purpose, unless otherwise provided for, excepting for one or more of the following uses:(1)Every use permitted in RU-1, RU-1M(a) and RU-1M(b) Districts.(1.1)Workforce housing units in compliance with the provisions of Article XIIA of this Code.(2)On lots meeting the requirements for two-family use, every use as a duplex or two-family residence, including two private garages.

As long as you can hold onto the property you can continue to get the appreciation, principal pay down, tax benefits etc.