Either way you’ll more than likely have to wait 6 months to refinance for the equity. 

If you ended up switching routes to a cash out refinance, or with a combo of a 1st mortgage and a HELOC as well (ex: 200K first mortgage with a undrawn HELOC of 200k) i can help you with that. feel free to reach out if you wanted to chat 

Hello,We are trying to refinance however, lenders are asking that we request a payoff or subordination of a lien held by HUD.

One way to access the increased value of your home is a cash-our refinance. 

No prepayment penalty.Our goal would be to purchase the property with the above terms; add value to the property over the next 4-6 years and refinance the owner out with long-term, fixed, non-recourse, agency debt.

(I don't want to do BRRR, because I want my ROE to still be roughly 12%, such as if I have 100k equity in the deal after I take out all my invested money through a cash out refinance, I would still get 12k annual cash flow, but you simply can't get that in a BRRR.)

The HELOC replaces the mortgage in that case, giving you access to as much as 95% of the appraised value of the home.If you do it that way, you can plow all your money into the HELOC, hacking away at your mortgage while you're looking for a new job and a new home, and once you find both, you can pull the stored equity from the home and use it to purchase a new primary.Once the HELOC is in place, you can forever use it as a revolving line of credit to invest in new rentals.If you refinance, even at a better rate, the bank wins.

You don't need to know everything to get started; you just need a foundation to build on and the rest will come through experience and then refining your education.You can build a basic understanding of investing in 3-6 months.

Needing to and seeing the economic benefit to doing so, are two different things here and while comps in your area are basically apartments and one other SFR, you're 'marketing' for quality renters, a little higher monthly rental yield and should you choose to cash out refinance (BRRRR)- your appraised value. 

If I do the cash out refinance I would have a fixed rate at 3.9% opposed to the 4.6% I have now.