The property can not be refinanced for greater than the amount purchased for at least 6 monthsAre we using the same definition or do you have another one or some other variation?

You would be paying back the loan via renting and refinancing or selling the property and paying the money back .

its mostly fix and flip loans and then cashout refinancing to permanent financing when rented 

Rates are still historically low, and I’ve seen with clients refinancing they may have a higher loan (from pulling cash out) but their over all monthly payment is comparable to what they are used to because of the lower rate.

But ultimately if you buy a 7% mortgage, you’ll almost definitely want to be refinancing it when the rates get back into the fours and fives.   

But if you keep the house and rent it you get some cash by refinancing it, the bank sees a secure asset paying the loan, and you get an income stream as well towards your living expenses. 

I ended up refinancing it later and it is an average asset now but has appreciated like mad so turned out to be great!

For example they took on (a) floating-rate debt (instead of fixed rate which was more expensive but safer), (b) short-term debt (cheaper but then they ran into refinancing problems) and (c) high levels of debt (to try to juice projected returns rather than conservative levels which aren't as "exciting" to a certain type of investor).

Refinanced after main house was finished and used those funds to build the studio.

We have seen lenders request a group of properties moved into a new LLC when refinancing.