We are in the process of refinancing which should save us about $874/month. 

When refinancing, Would lenders have an issue with a hard money loan in place?   

You can't control what the interest rate is, and each scenario has its pros/cons.However, you CAN get clarity on what your goals are and then work your way backwards to figure out whether or not selling or refinancing makes sense currently. 

Let's say $350K, 50K down, seller financing at 6% IR with a 5 year balloon.Let's say I start to shop around and to transition from seller financing to traditional financing because I found a 5% IR, I am essentially refinancing and putting the loan on the books.

If you are buying or refinancing an investment property, you can use a DSCR loan to finance which doesn't consider your DTI or income to underwrite the loan.DSCR loans are based off of down payment, credit score and either actual or market rents so it helps to supercharge an investor's real estate goals and net worth.

If you are talking about refinancing to stretch your payments out over a longer time, that is also an way to increase cashflow. 

We are considering either refinancing or selling and want to get a sense of the value before we take next steps. 

Purchase price: $125,000 Cash invested: $25,000 Purchased a triplex, renovated it, rented it, refinanced it.

Here are a few ideas:Refinance: Given that your interest rate is on the higher side, it might be worth exploring refinancing options.

I recently set up an LLC to manage and eventually take ownership of the property as soon as possible but I am assuming my lender will not allow that without refinancing with a higher down payment/interest rate.