It's been said many times that the fast paced German rearmament essentially bankrupted Germany to the point that it had to live by plunder by the late 1930's.
Assuming an assertive but sane foreign policy. Leadership of most of the Balkans. Unification with Austria. Danzig with perhaps some kind of special privilige through the corridor. Maybe even the Sudetenland if it's not at the price of a crippling war. - What do you think this rearmament would have or should have looked like?
I certainly think there was potential for getting more economies of scale by working in a more equal way with countries like Romania, Hungary, Nationalist Spain and maybe Turkey.
It depends on what the regime's ultimate goal is. If it is a Nazi regime they are planning on war and gearing up for it while they have an advantage, so quickly and early is better.
If not a Nazi regime, then it isn't anti-semitic enough to drive out German and Austrian Jews and steal their money, which really provided large amounts of foreign exchange. Not annexing Bohemia would also mean forgoing all of that money AND weapons industry AND capturing enough weapons to equip or finish equipping 22 divisions AND 3 Panzer divisions. Germany was short on foreign exchange, not money per se.
So what you are proposing means that Germany runs out of foreign exchange quicker, but if war isn't the end goal, which it doesn't seem to be in your scenario a more balanced rearmament with a smaller military overall will probably be ready by 1941 without bankrupting the country. That would mean using more industry for trade, which the government would subsidize, preventing that money (Reichsmarks not foreign exchange) for domestic military spending. It also means more goods are available to raise foreign exchange for purchasing raw materials Germany didn't produce. Also there probably wouldn't be a full four year plan, which cost immense amounts and really helped suck up foreign exchange quickly with the end goal of reducing long term dependence on foreign materials. There is probably no Westwall in this scenario either, which also sucked up lots of money, labor, and materials. Frankly this all means less spending on lots of various projects and a smaller military, so even with less foreign exchange there is not as much of a need to spend what foreign exchange there was, nor the need to build up rapidly, so less need to do it very expensively by rushing things.
More foreign trade means less expansion for the military, but a more healthy economy, so purchasing abroad is possible too.
Overall we are talking about such a radically different scenario here that uses a balanced approach, but without war. If this Germany was focusing on war, then they wouldn't and couldn't have done what you are suggesting, because it made no sense. If there wasn't war planned, then rearmament can take a totally different approach that avoids watering down the Reichswehr's quality and boosts the economy. Also without war Germany doesn't need to ally with Japan and shut out the Chinese, who were a massive market for German war material and a wonderful source of rare, critical raw materials that the were willing to barter for so Germany didn't have to use up its stocks of limited foreign exchange.
German rearmament could be completed from 1933-1942 as planned with a balanced approach, but no major surface fleet, probably no Bismarck-class Battleships, no Plan Z, not economic Autarky, so no expensive capital projects like trying to use low quality iron ore or expensively manufacturing oil from coal. Also the army would be smaller, as would the Luftwaffe along with their supporting industries, but they would be highly trained, highly effective, and less expensive. They would have the highest quality equipment and be a perfect defensive force and plan for the long term, training up conscripts to rebuild the base of trained manpower, while also planning longer term expansion of both the military and the military-industrial production base.
Probably by 1950 Germany would have a comparatively large, world class military like prior to WW1. Except now it would have a powerful air force and small, though very highly trained and well equipped navy that doesn't frighten Britain.
The Soviets would not build up as quickly or massively as IOTL without warlike Germany on the warpath. Poland and Germany probably work out some security deal too if Germany doesn't plan on going to war. Czechoslovakia, potentially sans-Sudetenland, but not guaranteed, would be a threat to Germany, as it was really friendly with Stalin pre-war, which the Poles hated. Germany and Poland can bond over hating the Czechs and Soviets. Basically I'm saying there wouldn't be a Red Alert type scenario. Germany would just build up a first class military with better priorities than in 1914 (small navy, large army, and a proportional, balanced air force with strategic bombers). They would rebuild their economy under Hjalmar Schacht and pay down their debt and be a mighty economy by the 1940s-50s with a proportional military that will be highly trained and well led, as the Wehrmacht's (Reichswehr?) strategic war academy, which took the best students/officers from all three services and trained them in strategy and economics in all matters of warfare together so they built up staff relationships, would have taken effect without Goering around to kill it, so the Reichswehr/Wehrmacht would be as well trained in strategy as operations and tactics.