Here in Georgia we close with attorneys, as you probably know, so there's not typically much interaction with the title company for a wholesale transaction.

(teaser rate of 3.75% through november)  I'm 1 month away from the 6-month period that many underwriters require for typical non-agency loans. 

Most first-timers can't turn a property around that fast anyways (in spite of their rosy projections), so it's typically a non-issue.

Typically you can go to a max. of 80% LTV on the cash out on this loan.

I would describe them as cumbersome, expensive and typically totally unnecessary. 

What do people typically do in this case?

I worked at a student apartment complex for two years and have to say the biggest pro is that typically the parents are the ones paying the rent.

@Michael Breedlove  As you are an owner occupant, you may be able to get a home equity loan, but I would not expect a very high appraisal given your recent purchase and they are typically conservative drive-by appraisals (so your interior work will not be considered). 

We typically only accept co-signers if they are short on the income requirements. 

Essentially what this technique does is keep the seller as one of your investors.