Some sources will allow for 100% of proceeds, others will allow for 10% of proceeds to count towards liquidity reserves. 

The other harsh reality is you just can't buy a $425k property with $1k liquid cash.

Investing in a portfolio of securities helps you diversify against your RE portfolio, plus adds liquidity via the Margin Line to use for any down payments or renovations.

My point being there are a lot of ways to get usable/liquid money from where it's tied up. 

@Bob Stevens I agree with you if we were talking about a tenant but suing a seller who just received liquid funds from sale or a brokerages insurance is something you most definitely can collect on if defrauded. 

If you have any proof of funds, or general liquidity, this will be seamless. 

One of the funds I helped develop returns a 15% dividend each quarter, and it's been consistent this year with its growth it also has a 6-month liquidity timeframe.

Not sure if I follow correctly on the difference between ARV with or without the value ad remodel, but it sounds like to simplify things, you are wanting to access the capital / liquidity through a refi now, but are concerned that if you do you won’t appraise high enough and won’t access 100% of your capital.

If you'd like to explore STR, you can purchase one of them under second home loan for 10% down which reduces the cost of the downpayment so it eats less into your $500k liquid cash.

Looking to connect with someone, local to SouthEastern MA and RI ideally, that is interested in partnering to launch a successful real estate investment firm.I am experienced in buy and hold, rehab, construction, property management and licensed RE agent in MA.End goal for my short term goal -- I have my eyes on a multi family property but all my liquid is tied up.If you want to chat - hit me up!