Is the worst case scenario that you cannot refi and have to hold for an extra period, or is it that you are borrowing the funds and lose money because you are out 50k for the rehab/refi?

How difficult is it to get a hard money loan for a distressed property in a rural area (let's say with a 400 square mile area county that has a population of 100,000)?

You can have little rewards along the way, like an extra vacation or a nicer vacation, but I wouldn't start spending like a millionaire until you're a millionaire.

I wanted a larger down payment to be easier on me financially, but I would rather have that extra 11.5% sitting in a bank account and slowly drain it to cover the difference between my monthly expenses and rent.

The extra people would get discovered by city hall if a neighbor turns you in.Be a good neighbor.

A good rule of thumb is to compare the extra 5-10% down you are doing and the monthly payment with the higher interest rate.

So you may be looking at paying 10-20k to get 10-20K actually out so 30-70% on the money you pull out plus interest and payback on an extra 30K plus 80% ltv is often a higher interest rate at 75% you would not be able to pull any money out with a 20% increase.

I would consider your goals, why did you buy the house, do you have a plan for the extra funds, consider taxes or capital gains-1031 exchange- what are you doing with the house now? 

I am working on my due diligence and new an extra set of eyes.

Would love to have an extra pair of eyes look this over.