After refi....you'd have $534k equity in $2,136,000 of real estate....and your $200k cash back in hand.....then repeat for cycle 3,4,5....Other posts have emphasized the leverage is helping you grow faster, and there are taxable income differences if you have deductible loan interest.Now, what if your local market experiences a few percent of appreciation per year?

@Tyler RasmussenUnless you forgo your commission - it will be considered taxable to you.

Spend more than 500 hours on the short-term rental business.Do substantially everything for the short-term rental business.Spend more than 100 hours on the activity, with no other individual surpassing your time commitment.Engage in a significant participation activity for more than 100 hours, with your combined activity in all significant participation activities exceeding 500 hours.Participate in the business for five of the previous 10 taxable years.Engage in a personal service activity (non income-producing) for three of the previous taxable years.Demonstrate regular, continuous, and provable participation in the business for more than 100 hours.If these benchmarks are met then your income would no longer be considered passive but active and any losses could then be used to offset other active income ...

I get it before work is started, so they know the job is taxable.

You will only pay income tax on the income from that state.Crappy buy and hold deals end up with negative taxable income.  

We have depreciation to help you lower your taxes, which is about 18.18k ( 500k property value / 27.5 years depreciation ) of non taxable income.

Contributions and accumulated earnings in traditional IRAs may lead to taxable income during conversion.

Section 721 of the Internal Revenue code allows an investor to exchange property held for investment or business purposes for shares in a Real Estate Investment Trust (REIT) or an Operating Partnership without triggering a taxable event.Many investors are aware of a 1031 Exchange where an investor must find a replacement property to defer capital gains taxes on the property that was sold.

Thus, the reward is worth the risk to me.If REI's are able to move every 2+ years in your primary residence, more people should consider the non-taxable gain....as you say "make a killing".

I would suggest looking into a roth IRA rollover, however that in of itself is a taxable event depending on your mix of pre tax and post tax dollars going over to the roth IRA.