A cash out refi should take 2-3 weeks with most lenders, and you should have only an appraisal a credit report fee as upfront costs. 

I would not put so much on an appraisal report.A number of reasons might be the answer for this lower appraisal report:1- What city is this property located?

The reason hard money is not cash (although some think it is) is because there is still an appraisal attached to it.

We're exploring creative ways to provide him with the cash needed for the down payment while avoiding triggering a taxable event.One strategy we're considering is purchasing his future primary residence ourselves, making the mortgage payments, and then, once we've built enough equity—comparable to the appraised value of his rental properties—transferring the title to him as a form of exchange.What are your thoughts on this approach?

When we order an appraisal, we are handing in a rehab budget to the appraiser and they will use this to help calculate an ARV which is used in the lending calculation. 

A potential challenge with a HELOCs is they are based on the current appraised value of your home, not the improved value, so you would need to make sure you have enough accessible equity.

You could get the 3rd party processing fee removed by working with a broker/lender that does in house processing.Seems you're being gouged for the appraisal review and admin fee...that's ridiculous. 

So the initial appraisal for the refinance was good at the time, but now the As-Is is not gaining traction with buyers.

Banks must approve a short sale for a short sale to take place, and banks hire appraisers and other real estate agents to perform broker price opinions (BPOs), or estimated values of the home.The goal would be to negotiate with the seller before the home becomes a short sale. 

After inspections and appraisal come back satisfactory make a new listing for the property. 2.