We would use hard money and close very quickly.

You're losing money every day (which you can go after the tenants for). 

Here is what is being considered:SCENARIO 1):1) Parents loan us money at X% rate.2) Loan terms would allow for early payment without penalty (we would get a conventional loan in 2-5 years to pay parents back).

I don't know of any mortgages where you can put no money down. 

Just because you buy something for $350K and renovate it and put money into it doesn’t necessarily mean that you will be able to get a much higher value on a BRRRR strategy if none of the other units in your development or area will comp out.

Potential asterisk on pulling that money out of the S-Corporation.The benefit of not having real property in an S-Corporation is flexibility (don't have the same deemed gain rules if pulling it out of a partnership), basis in the debt (in your case you don't have any debt).You could still end up with some double tax on this. 

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I've never actually seen a HELOC where the bank restricts what you can use the money for. 

They were very unhappy they had spent the money with TurboTenant and it is apparently not communicated that not all property managers/landlords will accept TurboTenant applications (which is true for the ones they haven't noticed are not using the TurboTenant applications apparently, which was us, until today).

I advise telling them it took a lot more money than it actually took to construct.