This way you can refinance out all of your cash and hard money positions.Whether or not it will "cashflow" has nothing to do with BRRRR (except for maybe "repeating"!). 

Sitting around waiting and hoping will get you no where.Also, history seems to repeat itself.  

Me and my girlfriend are currently saving to purchase a home within the next year or so to start house hacking, my concern is how signing the lease option to purchase contract will affect our eligibility for first time home buyer programs? 

Since then, I have been repeatedly told that my funds would be forthcoming, only to later hear that all funds are frozen.

Sellers or JV partners may value a hands-off partner who can handle rehabs.Start with a Strategy: Whether it's BRRRR (Buy, Rehab, Rent, Refinance, Repeat) or simply flipping properties to build capital, define a clear path for your first few deals that aligns with your long-term development goals. 

From there every 20 point increment affect pricing differently.

Check out these two articles that provide a good overview of the factors that affect qualification and loan amounts:DSCR Loans: What Are They And How To Get The Best Termshttps://www.biggerpockets.com/...DSCR Loans: How To Use Pro Strategies To Save More And Make Morehttps://www.biggerpockets.com/...

I control the price I buy at (equity gain at the buy), I can force appreciation on my own terms, I get the monthly cashflow, I get direct tax benefits, appreciation and loan paydown that directly affects my net worth since I own the asset.

These items add up over time and if your listing is not killing it this could affect ROI.

All the "bad" affects them first.Pref equity has a known capped upside and more downside protection, but as @Lane Kawaoka said, getting paid and/or getting your money back is not a guarantee.