We ended up doing just that and found someone with better income and credit by waiting for it.On the topic of HELOCs, I'm actually looking into refinancing to pull out the sweat equity. 

Is the partner just the initial capital and then they are out after refinancing (Private Money)?

There are times to use monthly MI as well if you think you've found a great deal where you can force equity or improve the value of the property so much so that your current loan with monthly MI will be at 80% or lower LTV/loan to value after your improvements then monthly MI is better because you may end up refinancing or removing MI 6-24 months after closing.

If it is and you are able to raise the NOI and get the property refinanced based on the new value then you can cash out and pay the lender back.

I refinanced out and got a 15 year instead of a 30 year with essentially the same mortgage payment.

I would like to use the brrr technique, but I'm kind of confused about the refinancing part.

It is possible to over pay on the purchase and yet have a high ROI say... 20% with higher cashflow which would make it underpaid in a sense Ex: Home1 50K BELOW market cashflows $400/mo 12%ROI / Home2 100K OVER market cashflows $1000/mo 19%ROI......... just know that your probably not refinancing anytime soon and that equity is off the table for now. 

So, if this is true for refinancing, I could refinance on both lots in a year and pull a decent pay-day out of it and pay off the seller.

So, if this is true for refinancing, I could refinance on both lots in a year and pull a decent pay-day out of it and pay off the seller.

I have used hard money for distressed properties to purchase and rehab then refinanced at the 1 year mark.