The answer does depend on how much time, energy, and money you are willing to invest as well as your personal risk tolerance, and investing philosophy.

@Greg R. is right, you have to figure out your risk tolerance.

Our system varies drastically from what most on here think is right,  but everybody has different risks tolerances.  

My goal is to simplify the investment process, providing you with expert advice and market insights.I'd be more than happy to sit down with you for a no-obligation consultation, where we can discuss your investment objectives, assess your risk tolerance, and create a customized investment strategy tailored to your needs.

Don't get involved - just don't tolerate it either. 

It's worth noting that these strategies are not mutually exclusive, and some investors may incorporate elements of both, depending on their financial goals and risk tolerance.

Just evaluate one property at a time and decide if it makes sense given your market, risk tolerance, future plans, etc.One point you might be overlooking (not sure if it was covered in the podcast) is that for those us of using Fannie's delayed financing exception rule, the CO-refi amount is limited to whatever the initial investment was, which should be well below 75% of the appraised value presuming low acquisition cost and successful rehab. 

I would say this is a topic for their financial adviser-  their liquidity, cash flow and growth needs as well as their risk tolerance should all come into play here. 

Don't buy the course and minimize your emphasis on this type of approach.DO learn how to add some concessions when the seller will tolerate it. 

If they can tolerate the risk, perhaps a small % paid quarterly or a lump sum when the property is sold.