By utilizing a cash-out refinance on the $250,000 valued property (after renovations), the investor will receive a $200,000 loan, recouping the $170,000 initial investment and gaining an additional $30,000 tax-free.
"that loan ends up being $200,000 so I'll get all the money that I put in and I'll get $30,000 out and since this is a loan that $30,000 will be taxfree"
