If I were to go the conventional route It would keep me on the sidelines for too long as I have to save up for a lot more.

You wouldn't be financing the reno money, but as long as it could still appraise for $440k, you would be able to use the money saved from the lower down payment to go towards the reno.

If you are friends with a ton of millionaires who are looking to buy and list multi million dollar properties, sure you could, as long as they're comfortable listing and buying with a new agent who only works part time.

I've had some suggest that the commercial lenders don't care where it comes from as long as the property valuation comes in fine. 

as mentioned above there should be boiler plate mandatory mediation for these circumstances.. but as long as U dont sign the release the money just sits in title company account.. after some time with no resolution  ( At least in OR and WA which usually is very close to CA) money is then interpleaded to the courts for disposition then you both lawyer up.. these rarely go that far as lawyer fee's exceed the amount your arguing about.but splitting the baby in some manner is for sure a very common outcome if you dont want the drama.

The police appreciate landlords who put these systems in and spare a few cameras to watch up and down streets from private property, as long as the landlords make the recordings available to them when asked.For a duplex, $400 will buy you an 8-camera wired system that will make criminals hate and fear even coming up an down your street.

So as long as you have the funds to cover the difference you will be good. 

@Tyler Potteiger  Yes, as long as the lender is comfortable with a 2nd position mortgage (although that's what HELOC's usually are). 

So that in the event you want to do it yourself with permits or contractors are not available in a timely manner you can do it yourself do it right and get it done and move on to the next opportunity.NC LAW snippet:A person may construct or alter a building on land owned by that person without having a general contractor’s license so long as the building is intended solely for occupancy by the owner and his family AND the owner obtains all required permits.

From what you say about quit deeding into an LLC, it leads me to believe that you would choose a commercial loan for the refi as commercial lending would allow the LLC to be the Borrower on title (as long as the LLC and/or property can qualify for the loan).