BRRRR Deal Paid in Cash Financing Options

[Charlie Bassett]

This is my first attempt at a BRRRR and need some help/suggestions for mortgage options.

The duplex is currently in my name but was paid for in cash by a family member's line of credit. We offered cash to be competitive with the offer, there were 35 offers in 5 days. I am 2 months into the rehab with another 2-3 weeks to go. I talked to a mortgage loan officer and they say my best option is to cash out refinance, in order to pay back my family member. The loan officer says the refinanced amount would be 75% of the purchase price and not the new appraised value after rehab.

In this case, is it a bad idea to transfer ownership of the duplex into my family member's name and then purchase the duplex back but this time financed? 

What are some other options? Ask any questions needed to fully understand what is going on.