For planning purposes, I net 20-25k a year easily between the two properties.

The main purpose of this post trend is to understand the BRRR strategy and determine if it works for me (and a secondary purpose is to have other newbies learn)Thanks JR GonzalezMEKeywords: hardmoney, newbie, Texas, BRRR, conventional, Multifamily 

Best of luck @Marc Anthony and chalk it up to experience and opportunity to get your name out there for marketing purposes. 

The first being that the shorter the hold period the higher the IRR and the velocity of money is increased.The second is that the majority of a sponsors compensation comes after a capital event (sale/refi) when they get into the "promote" or carried interest. 

It sounds like a better option for my purposes would be to roll into a traditional account that allows loans without a penalty for early payoff, thereby avoiding tax withholding and penalties. 

Some interesting comments made so far, most are...The first thing you need to realize is the bank orders the appraisal and it is their appraisal for their own purpose, not yours.

There are some issues with claiming the Section 121 exclusion (for tax-free profits from the sale of a personal residence), but this can be avoided if you have a single-member LLC that is disregarded as an entity for tax purposes. 

Luis Amador "If your sole purpose in life is to serve yourself you have no purpose."

However, because the zoning department found out I'd like rebuild the mother-in-law suite in the back, they are purposely (and yes, I know this for a FACT) trying now to foreclose on the property, so I can't rebuild the unit in the back.

The purpose of an LLC is asset protection.