The refund part is just to get you get committed to another deal that makes them even more  money than that refund.

The predicament we are in is the property is not in the condition to charge that much for rent and we would also leave a lot of money in the deal once we refinance if we cannot get in there to fix it up.

Aren't they losing money?

You obviously don't get the tax benefits of real estate, but if you're just looking for "returns", then lending your money out could be advantageous for your goal.

Alternatively, investing in money markets is another consideration.

It's how quickly you get money moving. 

Are you collecting properties or collecting money?

The other way I fund deals with none of my own money is using a private lender that I have years of experience and relationship with and/or using HELOC and other business lines of credit.

Pricing higher than a bank ( if you can actually get a bank to lend you money in the first place)2.

Look, I will try to simplify this: We have 3 parties money; (a) the landlord investor, (b) the lender giving a mortgage for purchase money, and (c) the tenant paying for use.