Your order of events to state your argument is actually completely wrong and this is one of the main reasons I went in a different direction.

The property needs a complete renovation and we expect the cost to be somewhere between 75k-100k.

Might not be the best place to invest for that, but if you do want to pursue LTRs, land, etc. in the South Sound/peninsula area, I'd be glad to help

I'm not an accountant, so could be wrong, but I think you're confused because it sounds like you're thinking that your cash-out refis somehow provided you with tax-free profit for the amounts you pulled out?  

Purchase price: $190,000 Cash invested: $80,000 Sale price: $405,000 complete rehab

This is NOT a % of how many turn into completed deals, this is ONLY an engagement rate.

Steer clear completely? 

Sounds like you're dealing with a real headache!

Velocity of money, or speed in which you can complete a BRRRR investment and repeat, is key to success, and refinancing with the shortest seasoning requirements is highly important.Loan terms and interest: Cash flow is also an important consideration for a refinanced rental property, so attaining a low interest rate, as well as other aspects of loan structure (term, amortization, or interest only, etc.), plays a big role.Generally, there are three main refinance options for BRRRR method investors: Conventional loansBank/credit union loansDSCR loansConventional loans are generally defined as loans originated under GSE (Fannie Mae/Freddie Mac) rules and guidelines and securitized.

Does that sound right?