If you can save money and renovate and the ARV allows you to pull your intial capital out sooner, I say go for it!

Just wanted to mention that the cash out refinance funds are not tax free forever.

It is possible to self-manage and save on this expense (or at least keep it for yourself). 

If the foundation is good, the roof is good, the floors are good, the layout is good, you are probably saving at least $100k right there in labor/materials.The other thing that frequents adds a lot of cost is when the unknown occurs.  

It can also be an opportunity to discuss house rules and expectations to ensure you're on the same page.While being cost-conscious is understandable, investing a little upfront for proper screening can save you a lot of trouble in the long run.

It’s saved me more than once from scrambling at the last minute!

What does their savings look like? 

Would a cash out refi be under commercial terms since the property(s) are under LLC?

For example, I recently made a loan to a house flipper, partnering with my self-directed 401(k) and Health Savings Account (HSA).

I think there's a path to refinance that would flip me into positive cash flow, but I'm coming up short on ideas.