Net Operating Income     $100,000          $207,000Property Market Value $1,500,000         $1,500,000 Yes, Market value would go up as NOI increases, left the same for discussion, you can adjust to $3,089,000 new NOI value at 6.7% cap.CAP rate                           6.7%                    13.8%All of the above tactics, positions, decisions, situations are legal and easily executed.

I’ve seen leases executed with entity names only and no personal liability where the leasee decided to “stop throwing good money after bad”.

The return is low, opportunity cost is high, and execution risk also unattractive.

Time to execute the happy clause.

Great idea for a HGTV who has a massive budget and national network of potential homeowners and contractors to facilitate all these things, but on a small scale I can see this as being extremely difficult to execute. the idea is technically sound, but like many things in real estate it's super easy on paper but real life doesn't always pan out the so simply. 

The top influencers and company executives in the industry would always be found around the poker table.

Yes it does work, but it is a complex product that need a proper execution to realize its full potential.

Nor can the seller "cancel the deal" for any reason other that failure on your part to perform or other contingencies that are listed in the contract.At this point - assuming that the contract has been fully executed and especially if the EMD has been tendered, the contract is binding. 

I don't think it's a bad strategy depending on how you execute it.

On a traditional BRRR, you refinance with an executed long-term lease.