Do I go with a Hard Money lender until I can refinance into a Conventional loan? 

After you've reno'd and trended rents, either (i) sell / cash out or (ii) cash out refinance with a long term 10+ year fixed perm loan, and proceed to own/operate. 

Just know that rates in general are high right now, and if you can negotiate a way to get a lower rate in the future without having to refinance with your seller, that would be a good thing.  

Because I have extracted value via refinance, my cash flow is modest.  

You will likely have opportunities to refinance to lower that rate later on and make a decent deal better.

After the renovation is complete - you can either sell the property or refinance it into a long term DSCR (debt service coverage ratio) loan.

The definition of a “trade or business” comes from common law, where the concepts have been developed and refined by the courts over time.

Let's not forget how awesome it'll be once I am able to do a cash out refinance on the home.All in all, it depends on you.

If so, that would be a good starting out point as $20k can be enough with a hard money loan and a lower value property (although likely challenging in CA).DSCR Loans are an option for turnkey and a refinance - there is no DTI involved in the qualification so salary does not matter

. $425k) to purchase a 12-unit Apartment ($1.5M) with 25% down ($375k from the HELOC).The remaining $50k from the HELOC could go into fixing/rehab of the 12-units.Then cash-refinance the larger amount from the 12-units to pay off the HELOC in one lump-sum (as much as possible), then using the cash flow from the apartment to pay off the rest of the HELOC.Repeat the process with a new apartment.1) Does this make sense?