If they pay the new amount on time no problem.

Now, this would obviously be negatively cash flowing since you would need to pay taxes and insurance.

When you draw from the equity, you are "borrowing" it from the bank and have to pay interest.If you borrow against the equity at 7% interest and then loan it out at 15% interest, you are earning a positive 8%. 

Insurance would cover it, I would pay the deductible, and no assets would be lost.If you are in an area like San Diego where people are more likely to sue, a judge is more likely to find you guilty, and the payout is expected to be higher, you may consider an umbrella insurance policy.

If your paying cash to buy and rehab then refinancing I get that.. but your still paying for two closing costs.

I can’t give condos away and many investors are under water as they either re-financed, took out a reverse mortgage or had non/paying tenants carried over from the COVID moratorium.  

My portfolio is not that large and it irked me to pay a bookkeeper so much and still have to do a lot of the work.

That will increase your material costs for the job and is the contractor paying for the material in their bid or are you paying for it and paying them a labor cost.

Buyers don't look for financing and its foreign so they don't jump on a forsale listing on zillow.I've had the best (only) luck with zillow rental adds,   starting with the pitch;  rent to own, live in a great home while you pay off owning it. 

Pay attention to improvements that provide the highest return on investment, such remodeling the kitchen and bathroom.