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.

Purchase price: $2,900,000 Cash invested: $900,000 Sale price: $4,200,000 Refinance on 2.9mm value.

Beyond the simple solutions like “do repairs yourself” or “Refinance to lower rates”, etc.

Cash-out refinance and expand.  

The catch is, my current interest rate on the conventional is 2.87% and I'm positive it will nearly triple if I refinance with a DSCR so it's a tough decision.

One of the main advantages that the US has remaining is the ability to refinance.

My wife and I are currently prospecting properties for a STR and stories like this along with all the BP podcasts on STR have really helped us as we refine what it is we are looking for specifically.

Of course, if you refinance your first VA loan into another product, that would certainly clear up the issue.