Hmmmm, considering the rate differential would be close to 4, on a conventional you could say over $4k a year that could go back into your property. 

The better and cleaner way to go is either get a temp loan (conventional, private, hard money, etc), do the repairs, then Refi the home into a conventional amortized loan.

When I first started the process I got preapproved for a conventional loan with 5% down.

For more conventional financing, you'll have to probably be in the high 600s or better.

Current home-owner now on a conventional loan.

I actually planned on using a conventional or home ready loan with low down payments to avoid PMI.

An optimal BRRRR really requires that you purchase with cash (or something cash-like) and not conventional financing. 

.)$59,500 cash TO YOU at closing.Option 4 (cash out)$375,000 loan amount4.125% Fixed30 year conventional$10554 loan costs (1.75 pts/$6,562.5)$2009 new monthly payment (including your taxes and insurance.)$61,272 cash TO YOU at closing.

My intention was to do either a 3% conventional or 3.5% FHA loan-I have a low cash down payment that I have raised. 

@Pete AbillaIf your credit score and DTI qualify, then you can get 5 mortgages, even conventional, and close simultaneously.