Can you expand a little bit more on what you see as the benefit of this arrangement?

I'm at the nervous and cautious stage, but am trying to educate myself as much as I can before diving in.

(Payoff is $85k, House could sell north of 200k).Looking to do first RE deal...considering possibilities of small MF (2-4 plex) and thinking of possibilities of arrangement and financing.

My typical arrangements are either a 1 year term that becomes a month-to-month lease at the end of the initial term or a month-to-month lease from the very start. 

Separately, I will have around 30-40k in cash around end of year looking to do first RE deal...considering possibilities of small MF (maybe 4 plex) and thinking of possibilities of arrangement and financing. 

Even if you don't need it for this project this may help you in the future.At this stage in the process for you I feel like most questions will be answered just by asking for the refinance but you can also ask if their is a "seasoning period".Are you refinancing in an LLC or your personal name?  

It would not really affect your DTI though because you would be financing out of the PLOC in the refi stage (if all goes according to plan) so that loan would no longer be a part of the calculation. 

And possible workout a payment arrangement.

are some of the main things I'd suggest doing at this stage.

In one land development and multifamily construction and leasing project, early investors were promised 10% PR raising money to purchase land and get to pre-construction stage.