If it's a primary residence the total loans of $400k (1st + 2nd) equals 80% CLTV (combined loan to value) of the purchase price.

Some lenders will up to a 95% combined loan to value for a heloc assuming credit and income are strong. 

The combined loan to value (CLTV) has to be no more then 95% for most programs.

Especially A lender as they are notorious in this business for being full of crap. 

Lets get back to the basicsBRRRR is a method whereby you combine flipping a home with long term holding (usually as a rental) and using a cash out refi to get equity back for the next project.

@Tyler Prosser, When combining 121 and 1031 the reinvestment requirement for the 1031 is $500K less than the net sales price of the property. 

-Lease to buy @ $930,000 (currently appraised at $890,000)-2 year term with option to purchase at the end of term-Non refundable 3% option fee of $27,900 -Rent $4700/month If purchasing at end of term: Option fee applied to purchase and 10% of all combined monthly rentIf not purchasing: Option fee is non refundableSeller able to break contract anytime with 60 days notice if agrees to pay renter 2x amount of option fee.

The IRA funds would not be able to be combined with other personal funds as in your note above. 

Property was just a good combination of the "right place and right time."

If the balanced is refinanced into a conventional loan there would need to be enough value in the property to meet the lenders CLTV (combined loan to value) underwriting requirements.