I refinance for $200,000.  

But, if this is a future rental, you might not refinance this!

l was just told I would have to pay 23k to refinance a portfolio rehab loan on two properties. they are only lending 70% LTV, my rental rates are $1785 and $1985, but the market rents in the areas are only $1400/1450. 

Tim,My advice as a banker would be to do a cash out refinance and avoid carrying the Heloc.

The issue is that after a high LTV refinance to extract the value add, the property is large cash flow negative.  

Picking a house with major, costly structural issues or in a location with poor rental demand can hurt both the rental and refinance phases.

You get a voting share with a TIC but the problem is so do the other investors so you can have a lot of infighting on when to sell, refinance,etc.

Most DSCR lenders I will note can go up to 80% LTV on rate-term refinances. 85% LTV is a lot more of a rarity. 

There'll be a prepayment penalty but I can always refinance a few years down the line, depending if I need more cash. 

Does this affect a cash-out refinance or pulling out equity in the form of a HELOC/equity loan?