Curious if anyone's ever tried to pull this off to fast-track the development of a site by producing the required capital by renovating the existing dwelling, only to knock it down straight after. If so, did it work? Let say you have a run down 3 bed house on a large block. You have pretty good cashflow and a bit of equity at hand but not enough to develop the site immediately into what you'd like (lets say a triplex). What if you do a structural renovation on the property extending, adding bedrooms....spend $150k to create $375k equity. You then pull out $300k (double what you put in) which provides the seed to develop the triplex. You pretty much immediately knock the house down and develop the triplex. Sounds kind of silly to renovate a place and vaporise it soon after but I can't see a major hole in the idea yet. Anyone able to point out the problem?