Need help with my BRRRR

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Hello BP,

I currently have a house under contract. Here are the specs.

Purchase Price: 127,500

ARV: 240,000 - 260,000

Estimated Rehab: 50-80K

I will be using hard money to get this financed so there will be hefty holding costs for the interest only payments (~1100 / month). I plan to be in and out of the rehab in 6 months (fingers crossed).

I am still waiting on itemized bids from the GCs that walked the property. My mortgage contingency ends on 5/22. 

As of now, I have two options for financing. 

1. Lender A is providing me 65% LTC to fund the purchase price + rehab. 15% of the purchase price down payment. This will yield me about 52K for rehab budget. If the rehab budget is over this amount, that's just more down payment % I would need to fund the deal. Once I submit the renovation budget, their lending process will take about 2-3 weeks to complete, which will go past my contingency date. 

2. Lender B is providing me 70% LTC. 30% of the purchase price down payment. 100% of rehab provided. 5 - 7 days close. 

My questions are: 

Do I go with Lender A and ask for an extension on my mortgage contingency? I do like them better as a lender in general, but that would give the sellers to back out. What would be a good way to ask sellers for an extension? Or should I go with Lender B and pay a higher % down payment but have peace of mind knowing I close? If my itemized bids come back higher than what I estimated, I do want to be able to back out of the deal as mortgage will fall through. (ie: I can't afford the down payment of the new loan structure with higher rehab costs)

The ARV range is very accurate with recent sales of March - May 2023. I do worry about the appraisal coming in lower than my ARV in 6 months when it comes time to refinance (due to our high interest rate environment / more supply coming on the market = buyer's market and homes going under asking). Are there any ways to mitigate this? I was thinking of holding the hard money loan for as long as I can until the ARV comes out to what I need it to be, but this sounds risky.

If rehab budget does come out to be 80K, it would really be a deal killer. Would any of you guys still pursue the deal? I already fell in love with the property because of the location so I'm afraid I am too close to it to analyze this deal correctly. This location is very up and coming and I know appreciation will treat me nicely in the coming years if I hold long enough. Rents are strong too, so not worried about that either. 

Thank you all in advance!