Ask if the rehab draws are in advance or arrears.

The type of repairs also varies based on the loan type, here's some information pasted from (not my site) https://themortgagereports.com/18228/which-fha-203k-loan-home-construction-standard-streamlineThis is the work which is allowed via the FHA 203k Limited: Repair/replacement of roofs, gutters and downspoutsRepair/replacement/upgrade of existing HVAC systemsRepair/replacement/upgrade of plumbing and electrical systemsRepair/replacement of existing flooringMinor remodeling which does not involve structural repairsExterior and interior paintingWeatherization of windows and doors, insulation, weather stripping.Purchase and installation of appliancesImprovements for accessibility for persons with disabilitiesLead-based paint stabilization or abatement of lead-based paint hazardsRepair, replacement or the addition of exterior decks, patios, and porchesBasement remodeling which does not involve structural repairsBasement waterproofingWindow and door replacement and exterior siding replacementWell or septic system repair or replacementAnd, this is the work allowed via the FHA 203k Standard: Major rehabilitation, such as the relocation of a load-bearing wallNew construction, including room additionsRepair of structural damageRepairs requiring detailed drawings or architectural exhibitsLandscaping or similar “site amenity” improvementAny repair requiring a work schedule longer than three (3) months; or rehabilitation activities that require more than two (2) payments per specialized contractorImprovements that require a plan reviewerImprovements that result in work not starting within 30 days after loan closing; or cause the owner to be displaced from the property for more than 30 days during the time the rehabilitation work is being conducted

The refi will have the previously mentioned costs, and subsequently raise your payments on your current house (diminishing cash flow).

They're a smaller community bank so they don't even report subsequent loans to the credit bureaus.

@Jerry Padilla is correct the trick is to put your renovation costs on the HUD and held in escrow you can then instruct the title company to pay your contractor in draws.

Post monthly charges each month and it would draw on the prepaid balance.The prepayment would be marked against Liability account on the balance sheet, not the P&L.Take it this way, if you have 100 tenants and 1 tenant decides to prepaid 1-2 months in advance, are you going to put that money in a separate account and change your basis to accrual?

As closing was drawing near and no funding was available, we tapped into our other business’s coffers to complete the purchase in cash.

You can probably get the acquisition piece, in many instances with just 10% down.Renovate the property with the hard money lender's money (paid back in draws after you've completed the work)Once the property is stabilized (no construction and has a tenant), get a portfolio loan that has low seasoning  and a 30 year fixed option based on the new appraised value.Stephanie

I would stongly suggest you consult with an experienced attorney to draw up the contract. 

I have invested in other states like TX, HI, and IN where the title company simply prepares a subsequent warranty deed into our trust 1-2 days after closing.