Of course, there are always exceptions to the rules---for example, if you can get a greater return on your investment by deploying the equity elsewhere or if the cash out refinance will be dedicated to improvements/efficiencies meant to improve cash flow---these are just two circumstances were your thought process could make sense.

And they definitely needed that $200,000 for this renovation project, because as you can see, they and a lender who deployed the funds for this would likely be boarding a sinking ship. 

If youre planning on continuously deploying the cash from the equity in the condo, a cashout refi probably makes the most sense.Conventional loans are typically the better deal vs DSCR, but you wont be able to get a Conventional loan if the property is owned by an LLC.

After power school, I'll be deployed for weeks or months with only limited email use. 

What's your budget and capital you're looking to deploy? 

If you have maturing debt on the property or need to deploy this cash elsewhere, I would try and see it through with your current lender & work toward a solution.

I have the opportunity to purchase a 13m SFR portfolio, however, most of my available cash is deployed into a 1031 and BRRRR deal.

That is the best track for agents who are veterans because you will understand more about buying when deployed and the transient nature of ownership if you are still in so this is smart.

an accidental BRRRR basically.i'd rather have less cash flow but more capital to deploy than vice versa. 

It'll be tough to get into a pure investment in your area for 35k but here are a few options:- partner on the second deal- if the numbers make sense and you could get more cashflow then you could look at a higher price point but my guess is this will be difficult to find- Buy your first property as planned, and save the 35k as reserves and/or just keep it for the next down payment on another FHA after a year- find a place that needs some work where you can use that money to fix up and force appreciation to the propertyPersonally, I would look at those last 2 options where you have the cash on hand ready to deploy for the next down payment or rehab costs if needed.