Take a hit and refinance later?

Or refinance for spending cash when it come time to retire.The advantage you have living locally is that you can buy a new primary residence every few years and keep the prior home for a rental.Good luck.

If you have good credit and plan to refinance if rates ever drop significantly, I would lean toward Conventional. 

When they leave, we will update their side and hopefully cash out refinance and go do it (house hack) again.

Is there a combination of lending products and tactics you see that can make it possible to refinance after possibly 2 years and get out a large enough portion of funds to use towards the downpayment on another property?

At the end of the 12 months, I would refinance at 500K after fixing up the property and investing the profit from selling my current home in the new property.

For that reason I built a full-functioning cash flow model taking into account hard money, the mortgage refinance and all relevant operating expenses to assess monthly cash flow.

After I would refinance and roll it into the next deal, like all BRRRR's work.Lets say I find a deal and the numbers run to be exactly like the situation above.

Just do the deal in cash, then do a refinance.

But it works out either way for the 1031 exchange.And of course, once you have completed your 1031 exchange you can always do a refinance and take cash out any time you want.