However, I'm also unsure how material participation would factor into this scenario.

Priced too high, rehab estimates too low, and they don't factor in the cost of selling (commissions and closing costs). 

Agreed there are so many factors to consider.

Until Fed begins to cut rates I’ve found alternative lenders in some cases to be competitive with banks on construction debt when considering the totality of factors (rate, leverage, depository relationships and pre- payment penalties).

Other equally contributing factors you want to consider is the properties positive cashflow, asset appreciation over time, debt service paydown over time, as well as hedging your dollars against inflation - all of which make real estate such a great investment especially when you have the right property!

The number of properties an LLC owns can influence DSCR (Debt Service Coverage Ratio) loan approval for several reasons.

I've included an example below to help illustrate this.So different lenders have different rates (which do vary even for DSCR loans) but these are factors they all consider.See example below:DSCR < 1Principal + Interest = $1,700Taxes = $350, Insurance = $100, Association Dues = $50Total PITIA = $2200Rent = $2000DSCR = Rent/PITIA = 2000/2200 = 0.91Since the DSCR is 0.91, we know the expenses are greater than the income of the property.DSCR >1Principal + Interest = $1,500Taxes = $250, Insurance = $100, Association Dues = $25Total PITIA = $1875 Rent = $2300DSCR = Rent/PITIA = 2300/1875 = 1.23If a purchase, you also generally need reserves / savings to show you have 3-6 month payments of PITIA (principal / interest (mortgage payment), property taxes and insurance and HOA (if applicable).

Given these factors, is it worth losing some cash flow by refinancing to a conventional loan, or should I explore other options?

Your location may also play a factor in this.

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