Portfolio Blanket Loan & Buy and Hold or Fix and Flip

[Brandon Sturgill]

I currently have a blanket loan on two properties: One residence and one rehab project. The financials look like this:
Portfolio (blanket) as a 1/1 ARM
$197k total loan (~80%LTV property 1= $122k, property 2= $132k, rehab construction budget= $34.5k (on a 6-draw scedule))
Property 1 was purchased at $77k (ARV $122k) and proeprty 2 purchased at $89k (ARV will be $165-170k when completed).

The question is what direction to head when the rehab is completed in 60-90 days...can I break the properties apart and re-fi main residence and hold property 2 as a rental...I hate the fact that I have to completey re-engage the underwriting process...what about converting the blanket to two independent mortgages?

The alternative is to sell the rehab project and "rinse and repeat." I think this would permit me to pay my residence to free and clear status and have $122+k in equity to use to acquire other investment property...Has anyone gone through a scenario like this? What worked for you? Thanks.