How do you refinance a flip?

[Will Kaufmann]

We are listing a flip soon and looking for alternative exit strategies in the event we cannot sell by the time our loan terms. At the moment, it does not look like renting is a viable option as the market is thin for rentals. Under our loan agreement, we can request a 6-month extension but that will cost 2 points and continue at an interest rate of 9.99%, which may be too expensive. I searched extensively on refinance strategies and did not come across much information. Here are some key details:

Purchase Price: $172,000

Rehab Costs: $100,000

Financing and Holding Costs through Term: $48,000 (all in cost of roughly $320,000)

Balloon Payment: $272,000

ARV: $300,000 - $350,000; the variance is explained by some investors using below-grade finishes and also using "fire sale" tactics.

The DOM in the market varies, with some properties selling in 60-90 days and others sitting for up to 180 days. Ultimately we may need to keep it on the market for another 6 months after the loan terms. Losing money on the deal is a reality but we would like to minimize the loss if that is our actual scenario. The property is held in an LLC and we have the DTI to obtain a conventional loan by purchasing the property from our own company. Obtaining a note from a private lender may be difficult, so my question is would a conventional loan be an alternative (assuming it would appraise) to settle the balance with the HML ($272,000)? If not, what are the options in the current lending market?

Thanks in advance for the input!