There are a lot of note buyers out there in the secondary market that like owner generated paper.. if you buy cheap enough you can still do very well with the higher returns those investor expect.I help my land flippers I fund do the same thing even today.. 

I assume that with the overage from the renovation, it probably ate into any extra contingency fund?

I don't want to do a traditional cash out refinance because the house would no longer cash flow and I don't have the funds to buy him out straightforward.

Hey folks - I’m interested to hear how others have gotten past funding bottlenecks for new construction projects. 

The borrowing against a 401k could potentially come in handy for a fix-and-flip or BRRR type transactions as you can quickly return the funds to the 401k.

Alternatively, you can convert your IRA into a "Self-Directed " IRA and buy investment real estate inside your SD IRA.

Have multiple funding options in the works because one might fail and you will need the back up to close on time.

You could use your own personal funds or cashflow from these to purchase the next units, but you would always have those paid off one's sitting there keeping you safe. 

I would also add with respect to Self-Directed account, Roth IRA/Solo 401k, with Roth Component.

Your biggest problem is your start up capital is way too low if you’re not willing to use hard money. 500k – 750k is a much more realistic amount of capital you would need to self-fund your own deals.