If a cash out refinance, many lenders will allow the cash out to satisfy the reserves requirement.DSCR lenders generally let you vest either individually or as an LLC.

Our plan is to sell or refinance within 15 months targeting a sale price of 3.5 million.This property is two blocks from the beach and has a high demand for short term rentals.

Mortgage rates will eventually come down and also improve cash flow for any potential refinance for capital accessed now.

Yes, you can use a bridge/hard money loan to secure a property and then immediatley refinance into a 30-year loan.

You cannot use the higher appraisal because it's a purchase not a refinance.

Either way, you could bring in a money partner for the rehab and offer a percentage of the profit when you sell or pay them out through a refinance.

And with the appreciation in the springs area we should be able to hold the property and let appreciation do its thing and refinance in the future to provide cash flow then.option 3, sell our primary and pay cash for a new primary which will free up the profits from our rental to use toward another rental and between both rents will easily cover a mortgage payment.

The reason I ask is if the loan is near market rate (versus the rates available 2.5 years ago) then a refi to extract sweat equity could make this more worth the effort, risk, cost. to be blunt, with the numbers as presented and without any extract of value (refinance), I am unconvinced that the smart move was not to re-rent in current condition for $1k.  

If you were to do a cash out refinance after the property is completed and take out that equity, you could pay off the heloc and lock in a lower long term rate on the home.

.)-- Interest Reserve TBD-- 500 Appraisal (est)-- Builders Risk Insurance Policy TBDTotal Cash to close: 29172 + 6 months payments (not in escrow but demonstrated)You will likely need to wait 6 months to refinance.