If you are able to purchase on cash terms you get with that 401K loan, you can then consider a Delayed Financing Exception refinance. 

I decided that I would refinance using the BRRR method and use this property as my first rental property.

I'm working to refine my property analysis spreadsheet and am having trouble figuring out what to estimate for water/sewer for the Chicago market. 

But then I refinance for $120,000 which would free up approximately $55,000 which is great, but then decrease my cash flow to only around $250/month after refinance.

This would be a refinance is that right so I should speak to the refinance department?

Now if you're investing to be hands off that changes things a bit, but you seem to be doing owner occupied units so I'm betting you are putting in some elbow grease.  

I'd place my bet on SFR w/ ADU over duplex, based on what you've said, but the price of the opinion that actually matters is going to be an appraisal fee and waiting for that to come back.

You line up a HML - so the next time you find a "deal" you use the hard money to buy the place, fix it up, and if the numbers are all correct and you are still under 80%LTV then you refinance into a conventional loan and payoff the hard money and construction loans.Keep doing wholesale deals, since this will give you some credibility with the hard money lenders, and you will need some of your own cash for the down payment and construction costs. 

You don't lose any money by doing that, of course, but you don't make any either.I know the reluctance to condos runs deep, I bet well more than 80% of real estate investors share that reaction, but I wonder if it's from their experience or if it's just that they are repeating the same thing they hear from others.

those are all Morris invest markets that is what I bet spurred this question..