However at those numbers, you'd have to get a HML and increase value, then refinance into long term debts

I see a lot of posts on Bigger Pockets asking if I should refinance because my closing costs are XYZ.

If a cash out refinance, many lenders will allow the cash out to satisfy the reserves requirement.DSCR lenders generally let you vest either individually or as an LLC.

These days, I'm only doing 1-yr prepay DSCR loans anyway because I expect rates to go down to where I'd want to refinance within 2 years.The other thing I did was beef up the monthly rent so that I could better qualify for the DSCR loan (but you need to use a lender that uses actual rents instead of market rents). 

2) Paydown the mortgage on the initial house and refinance to get rid of PMI to lower your PITI payment.

I’d greatly appreciate your thoughts or suggestions on alternative approaches we might consider. the pro and Cons of this approach recommended by a lawyer, when it comes to tax, refinance, etc..Additionally, if you know of any CPAs or lawyers in your network who specialize in real estate investments and asset protection, I’d be grateful for a recommendation (DM me)Looking forward to your insights, and thank you in advance for your help!

Once the new home is finished, then you would probably be better off doing a VA refinance on the new property and paying off the equity line.

So that's my new mortgage after the refinance post rehab.

Another option is to do the BRRRR method, buying a distressed property from a wholesaler, direct to owner or even MLS sometimes, fix it up and force appreciation and then refinance all your money out. 

Your remaining balances weren’t entirely clear on the two mortgages, they are really low rates, so instinct is not to refinance them, but sometimes it is worth it for the longer term vision.It also seems like you may be considering tapping your equity to replace your income, without knowing your age or long term goals, this doesn’t seem like a great idea on the surface.If you are interested in jumping into real estate full time to replace your income you should realize that is probably going to take 12-24 months.