We are currently preparing my real estate strategy, of course using the Bigger Pockets Strategy book, as a previous business owner in another industry, there’s a lot of good and refreshing information here in this Strategy book. 

On paper, it looked brilliant..cheap money, quick turnaround, and a profit projection that made his eyes light up.It taught me that the real risk isn’t just the cost of capital, it’s the predictabilty of your exit strategy.

A primary residence will most often provide more favorable loan terms so if you are willing to wait one year while you living in your new property and are comfortable with renting out your primary residence to a tenant, then getting something such as an FHA loan is a good strategy to minimize your upfront costs and hopefully get better loan terms.

Sounds like you need an agent and/or contractor based on your strategy. 

The goal here is to align with investors and educate them about the benefits of long-term strategies.

Is a cash-out refinance a good strategy right now despite the risk of a negative cash flow?

Quote from @Scott Tennell: For real estate investors who have worked with private money lenders, what strategies have you found most effective in structuring deals to ensure both parties are protected and the funding process runs smoothly? 

Is it the BEST strategy? 

Getting back to the original post, what would be a strategy you'd explore given his circumstances?  

Great tools that get updated regularly.I am on the lending side of things and would be happy to hop on a call with you anytime to discuss financial strategies and help answer any questions you may have about nearly any loan product available to help you on your journey, even if they are not products my capital partners offer.We are all here to help you learn and grow.