I’m willing to accept higher interest rates on a line of credit as the overall $$ amount is significantly lower than refinancing an entire property at the above mentioned 6-7%, not to mention restarting the amortization schedule all over again.

Can I then refinance the property and take some money out  to use it as a down payment for another multifamily property without paying any capital gains tax on the money I take out from the refinancing?

I plan to use the BRRRR strategy, financing initially with hard money and then refinancing after the rehab.

I’m considering refinancing to lower my monthly payment to around $850 and potentially using $30k-40k to invest in one of several ways.

Alternative Solutions: If refinancing isn’t possible and a buyout is needed, consider a structured buyout agreement where the remaining partners gradually purchase your share, allowing you to exit while they assume full ownership.This post does not create a CPA-Client relationship.

Your goal of buying, holding, and potentially refinancing in a few years is a great approach, especially if you're already running numbers and considering market analysis.

Leasing at $3k/month covers your current mortgage comfortably, so refinancing could relieve the pressure of the balloon payment.

After the property is renovated you can refinance into a DSCR loan to have a better 30 year fixed rate that you can consider refinancing in the future depending on where rates go.

It was always just a screening rule, and never took into account the complexity of the underlying costs.I'll BRRRR anything if I can break even on rent once I've refinanced. 

After refinancing we were able to achieve $628 per month.