BRRRR with conventional loan

[Edward Bowlby]

Say you bought a home with a conventional loan for 100k with 5% down. The ARV is 180k and originally the rehab costs were 45k but now they are 65k due to unforeseen issues. The total monthly payments are $762. I am living in the home while rehabbing as well as renting 2 other rooms for $500 a month. What is the best route to take? I know if I refinance the deal I will be "leaving money in the deal" because of the higher rehab costs, but the house is 4beds 2 bath and could potentially be 5 bedrooms which can rent for $1700 a month. Should I refinance the loan with a 180k appraisal and get 75%? If I do get the $135k from the refinance what would the monthly payments be on the new loan? Will I be able to pay off the original conventional loan? One question I have with the BRRRR strategy is once you have the new refinance loan, what type of money is it and how do you calculate the new monthly payment?