I'm stuck. What is the best way to get my cash back?

[Alisa K.]

Bought my first house in October with cash. Inherited AWESOME tenants: seniors with a 9 year track record who will likely rent until they die, take great care of the home, pay their rent on time, etc. Planned to rehab with them there to keep them, prevent vacancy and pull my cash out in the spring when I refinance before rates get jacked and market shifts....typical BRRRR in a slightly different order. I did not raise the under market rent because they were willing to put up with a rehab. Signed a 6mo lease due May. I thought this would give me a safety net in case I was unable to get the rehab done on schedule because all the contractors were so backed up and because I have never done this before. Goal was to raise rent when it got done. But most importantly, keep good tenants and get my cash back and more than I started with, right?

Problem is they have STUFF. EVERYWHERE: the basement, attic, and garage is full of boxes. Contractor says bad idea to do with them living there. Would likely help appraisal if there was less clutter. Also, my numbers tell me that I need to raise the rent to the tune of an additional $300/month to median market value to break even once I refinance it. Yes break even. Not a killer deal but it will do fine over time and I looked at it as a ticket to get into 2-3 other investments and check off the "first deal box." I'm new. I'm learning. 

Someone suggested to me that keeping the tenants is low risk. I could raise the rent gradually and skip the rehab until they vacate at some point. This is attractive because of the good cash flow ($500/mo); I could keep the tenants, and save 30K on rehab. Except my cash is all tied up! Further, I don't want to burn my very reputable contractor who has just spent a few hours with me on a walkthrough/plan with budget/estimates to follow. (I was lucky another experienced investor shared him.) At minimum, I figure I could pay him for his time and hope he will still consider future rehabs with me, but the number one question if I did this option: How can I get my cash back so I can get more real estate? I'm totally stuck and I don't know what to do. Please help:)