The seller is now asking for the inspection report and appraisal. 

Most HM lenders have you pay the appraisal management company directly for the appraisal, outside of that, all other costs are paid at closing. 

I thought a cash offer meant no conventional bank, appraisal, etc. involved.

Hi - any commercial appraisers out there or someone in a similar scenario of buying a multifamily with one nonconforming unit?

However, you will be able to "offset" the subject property's mortgage amount based on the fair market rent that the appraiser deems is fair for the property/area.

Try looking at it a slightly different way with some quick math:$900,000 sales price$22,500 cost of purchase (appraisal, points, lender fees, title fees, etc - 2.5%)$90,000 cost of sale (10% commissions, closing costs, buyer credits)$64,000 carrying costs (6 months at 10%)$25,000 additional carrying costs (6 months taxes, utilities, HOA, misc)$100,000 rehab cost (the number used above)$68,500 profit = $530,000 max allowable offer.Some numbers may be a bit high, others may be a bit low. 

I've never done the cash out refinance option before, and I'm not really sure how lenders make their valuation, or appraisal.

Just got the appraisal done on Monday...looking for a great ARV number!

Am I correct in my understanding that after the house is built and a CO is issued, we can work with a traditional bank/lender to get the new home appraised and take out a traditional mortgage on the home for XX amount (the amount owed to HELOC and hard money lender)? 

Once the renovation is complete the property should be appraised at 190-200k.