It allows you to pull out equity from the deal without refinancing into an investment loan, which requires normally at least 20% equity and is usually challenging given that you bought it with a low down payment loan.

Was curious about the process and possibility of securing a rental via a hard money loan and refinancing out of it within a month.

I'm having trouble with the decision of refinancing my primary property before starting the process of rehab/refi for my investment property.

Does refinancing can alleviate  your landlording headaches? 

I am looking to put permanent financing on my 16 units once stabilized, have you refinanced at this point? 

With the right project, you can pull out 100% of your equity when refinancing and "repeat" the process.The key is to buy low enough in an area that justifies an ARV that will allow you to pull out all of your cash at a ~70-75% LTV.

Among other things, these provisions prohibit the DST from doing things like making substantial capital improvements, refinancing, raising additional capital, and other things that are typical in real estate operations.This limits what DSTs can invest in and dictates how they must be structured. 

You can get a lower LTV DSCR loan and break even by renting it, but consider that interest rates probably won't drop considerably for a couple years, there are typically prepayment penalties associated with paying the loan off before 3 or 5 years, and there are costs associated with refinancing.

3.)How proven will the property need to be before refinancing into this type of debt?

I would "run the numbers" - two scenarios - status quo vs. refinanced + new property