I get the gist of this but not completely sure how it works out also would it be smart to use a private money lender for gap funding in order to come with the capital needed to get approved for the fix and flip funding?

Not a stamp of approval but rather a confirmation that basic industry practices are being followed.

Talk to your preferred lenders about whether they see a cash our re-fi as being approved with the same standards as an investment, i.e. loan to value, debt coverage ratio, etc.

The county is the second fastest-growing in the U.S. and the fastest in North Carolina.The zoning for the project is already approved, and with our captive audience of potential tenants, I’m confident that all units will be leased upon completion.I’m seeking advice on how to best structure this debt with a private investor or investors in the short term until the property is fully rented and long-term financing is secured.

Did you use a state-approved contract (if applicable in your area)? 

The biggest challenge I can see for this is that I hear it's a pain in the *** for the seller to go through a local community bank and confirm their income for their approval for a mortgage, and there are local/community banks that will approve 95-100% LTV loans based on how profitable the deal is.

Many investors stick with traditional financing methods without realizing the impact of fees, slow approval times, or rigid terms that may not suit their investment strategy.

Don't get sucked in to borderline applicants, make it as black and white as you can so you can approve or turn down with confidence. 

The Heloc for Better you have to draw 75% of the amount you are approved at the time of closing. 

Most peoples biggest "out" is if they are unable to get approved for the loan than they may be able to backout without penalty depending on the loan period written in the contract.Like everyone else said, it will really depend on the contract wording.