Then it comes a personal preference in terms of the cash on cash return you are after and the time value / velocity of the capital you're investing and other investment alternatives. 

(They spoke at one of our investor meetings)  As a broker, I have had great success with Kiavi, Velocity, and Silver Hill Funding.

I'm using velocity banking to pay off some rehab debt on my current property, but I know people who are compounding it by doing IB and using those funds to add to the velocity aspect.

Allentown provides higher velocity of tenants with its greater employment opportunities.

I want to keep the velocity of our money going, and not use my hard earned cash, but I also don't want to lose those sweet interest rates since our cash flow isn't terrible.  

Absent a large syndication deal, I think the answer is going to be flipping/trading in a high velocity environment where that money is turning over rapidly.  

Now... by refinancing, you are also able to increase your velocity of money to pick up more projects which can offer protection. 

The question really is: if you have $500k would you want the velocity of that money to increase marginally or increase at an explosive rate?

Since you still only invested upfront cash of $25,000 your cash flow has jumped from 12% to 16%, because now you’re taking $4,000 in annual cash flow and dividing it by the initial $25,000 invested.But if you take into account the additional equity you have in the property, your return on equity actually drops.Now you’d take the total equity you have in the property, your $20,000 down payment plus the $20,000 in loan paydown you’ve made to equal $40,000 of total equity.If you take your annual cash flow of $4,000 and divide it by $40,000 of total equity you have in the property, you get a 10% return on equity.This is an important metric because as investors we’re always looking to keep our velocity of capital high, and as we pay down loans and increase our equity in a property we will eventually see that return on equity amount decrease and once it gets to a certain threshold you may be able to pull out that equity from either a sale or refinance and deploy it into another asset.When you have properties and locked up equity you should always ask yourself if there are other opportunities that equity would be more effectively deployed to and you can use return on equity as another metric you can use to make educated investing decisions.

Pros:(1) Deals stand on their own(2) Putting properties in LLCs insulate themselves from any legal liabilities - cheap insurance(3) Lower or No Seasoning Period - Faster "Velocity" of Capital as you redeployCons:(1) High Interest Rates (0.5%-1%)(2) More Equity Locked Up (75% LTV)