In option 2, your costs are $25k higher.

Thank you,Jerry Jerry, I recommend getting in touch with an experienced broker who can educate you on all the possible options in the investment space for cash-out refinances.

HELOCs are definitely a good option for financing BRRRRs.

First step for you is to study investing in income properties.Generally a rental property will have in the range of 4% -50% of rental income going toward expenses to maintain the investment before debt repayment (mortgage). 

I borrowed $110K from a private lender for the purchase and self funded the repair of the offices. 3 months later, I rented 6,000 sq.ft. of office space to a corporation for $21,000/month + utilities for 5 years with another 5 year option.

Treating loan repayments like a non-negotiable expense while reinvesting property cash flow back into building equity.

Not only do they not repay funds, they claim we owe them additional funding for renovations that never actually happen. 

Are there other creative options I haven’t considered?

You've only owned it six months, so you probably haven't dealt with vacancies, maintenance, or capex, but you should be setting money aside for those things.Your partnership agreement (if you have one) should address exit options.

Once the city gives direction, then start to look at available options and penciling out the numbers to see what makes the most sense.