Most lenders have a limit to how many draws you can take from your rehab budget and often it will cost a small fee (you can include that in your budget) so you'll want to confirm if/ what their limit is should you expect to be taking a lot of draws or complete the rehab in smaller increments.

Don't be surprised if the fee disappears.  

Most HMLs I deal with will do that; however, they will probably charge an extension fee.

Is there a full-sized gym nearby that would be willing to waive their start-up fees for your residents in exchange for a referral from you?  

I don't think refinancing will make sense here at all, Assuming your property does appraise for $166k, and you take out a loan at 75% LTV, that will give you a loan amount of $124,500Assuming your loan fees are the following: Origination: $2,490Underwriting: $1395Processing: $500Title/Escrow/Other Closing Fees: $1800Prepaids: $1,300Subtracting the payoff + loan fees that would leave you with $17,015 at closing.

When used correctly a zombie property can be purchased for pennies on the dollar and then the hidden equity can be released via a quiet title action.

In the case of investors, they still require a 20% down payment, additionally there is a 2.25% funding fee because the REO was purchased under a VA loan. 

On the refinance side you don't have any points/fees and depending on the type of loan you refinance that can be a substantial amount.

It's also illegal for cities to attempt to regulate fees related to screening or applications.

@Avery RobertsonIs your partner charging a mgmt fee?