So for us if we can pay it back in 2 years or less, we will write off that interest and have it paid back in that period and look for the next deal. we find that if it doesnt pass our heloc test it wont pass  our SDIRA test...

They have high loan amounts and a very long draw period and long pay back period.

.- thanks   1) on the  1st mtg  refinance proposal at 4.1%  -  sounds like they are  offering you the  higher note  rate  so they can  absorb  some of the closing costs .....make sure you get a loan estimate and  review the details about them picking up all costs  ( titel / escrow / recording /  credit  etc ...)    2)  also  check the  index / margin and  caps   on the new  loan  offer   and  compare these to the  present loan  details  ...if you  keep this loan past the   rate/ payment  adjustment  period - you want to make sure  you  are aware of  how the ARM  can  change   3) the offer  to  do  " free  "  refinances in the  future  is  no  big deal  beacuse  any lender  can offer this  via  a higher rate  to  absorb  all costs 

Once my contractor took over the project, he was able to sync everything up and keep the project on tract to complete it within a 10 week period. 

Assuming the repairs come of their current asking price and are ~$40,000, I did a quick underwriting and come up with a 5.7% levered IRR at a 10 year hold period and 6.5% interest rate. 

Cash out refi usually requires a seasoning period (eg. 1 year before you can refi) but can vary lender to lender

The travelers might only stay a short period of time and only stay for a few months.

Yes, I am putting it under contract site unseen but not to worry, I will get there before the options period expires.

My investment goals are modest (say, 9-10% IRR over a 7 yr period) and I am convinced Philly will not generate that.

Wouldn't this mean that they are on the the hook until the end of the lease period?