Do you know if building a home has a smaller ROI from a cash out refinance than buying a home and adding rooms/sqft?

We added another wall in the basement to make the 3 bedroom into 4.

Higher interest rate + closing costs + one added year of loan length payment > remaining principal payment + lower interest + PMI.

I should have added "usually" lol.

It protects the existing structure and the improvements as they are added. 

If it works out, start adding more.

Thank You for the information on the topic, I should have added more detail this is new to me, but Im low on capital and recently saw the BP podcast episode with Rafa and learned short term rentals can be a very quick and effective way to build capital.

If you are looking for added protection of your other assets, try transferring the loan, ask your broker about it, to a Land Trust.

I want to be known for someone who is proactive, communicates well, doesn't nickel-and-dime owners, and takes away their headaches rather than adding to them.

I should have done it sooner though because it got messy and the delays caused me to miss my sale window which added months of holding cost.