You can refinance in his name to conventional cash out IF he can qualify.

The first house we bought almost 20 years ago, we have rehabbed it, rented it and now are about to refinance. 

If you could find two flip-and-hold properties a year that met even a 90% cash-out refinance metric, you could build a portfolio of a dozen rentals before you even had to think about where to access more capital.That might be a slower strategy than you hope for, but if you did it that way, you'd definitely have a stable, productive portfolio that would spin off a fair amount of cash-flow.

A cash-out refinance may also be an option, but I am worried about raising the mortgage payment.I thought I would post here to get some input from the community.

Should I do a cash out refinance?

I would want to rent the property out, refinance the property, and pull out my cash as fast as possible so I can move on to another project.

I'm in the process of identifying my offer to private lenders, so my question has 2 parts, 1) Do you think my offer is enticing for passive investors, and 2) What type of clause should be in the agreement if the refinance doesn't fully recoup the initial investment?

Plans are now to refinance out and start saving for the next deal.

I really like the idea of doing a BRRRR and I was thinking of using a HELOC on my current home to finance the down payment and the rehab, then pulling out as much as I can in a refinance to pay my HELOC off. 

If you plan to hold the next house for the long haul, I would avoid a HELOC and look into a cash out refinance.