I they accepted an offer of $118K from my brother but since he couldn't get the loan, we're starting over.

My inclination is to suggest paying back the PML 70% of the land proceeds (presumably $168K) at that closing and then hold the remaining loan until I sell the house. 

If you Bank/Lender does not allow it you can refinace the mortgage into a DSCR or true Portfolio loan program. 

@Kyle Trotman If you purchased with a hard money loan conventional lenders will require extensive seasoning to utilize the new appraised value for cash out. 

I have 9 loans currently so looking to do a conventional loan on my next depending on that process.

@David Matarazzo  Did either of you move forward with them for property loans?

If they can afford to stay, chances are they need to refinance and get the X name off the loan.   

This approach gives you access to better loan terms and makes the investment more feasible.In my market, the BRRRR strategy only works if you purchase an absolute steal from the seller—and deals like that are virtually nonexistent.

Quote from @Nicholas Dillon: I read somewhere that you can request to have your mortgage insurance dropped once your Loan to Value reaches 80%.

Quote from @Brandon Croucier: The loans are available but nobody wants to do them.There always seems to be something wrong with the properties, as lenders we just can't make enough $ for our time.9/10 Borrowers also complain about the "excessive fees" for the loan amount.If you are okay with paying 8k in closing costs then the loan is available.