It seems like the general Bigger Pockets advice for people BRRRRing properties is to begin the entire process by getting preapproved first (even if planning to make an all-cash offer) to ensure there won't be delays or headaches during the refinancing step.

My view was that if I was going to do Sec 8 again the house would really have to be rehabbed with their inspection process in mind to minimize the impact of their inspections.

Live below your means increase your disposable income as much as possible and invest it while delaying gratification for as long as possible.

You could put in very minimal cash and spend your capital on repairs to do a house hack flip. 

Stands to reason their motivation to sell with minimal hassle is high at that point in time.

Take out a HELOC or HELOAN & use the minimal amount you need for a down payment on your new primary residence.

@Kelby Norfleet pardon the delay in responding - missed this earlier.

The LL is in the wrong, but you have been minimally harmed (some lost time and effort, maybe application fees).   

If the borrower defaults then we own a property minimally valued at $1,700,000 while owing about $635,000, or equity of $1,100,000!

I did it for almost 5 years with minimal issues back in 2010's.