Should I do a VA Cash out REFI or not?

[Eric DeVito]

Hello all, just would like to some advice on what to do. I am interested in renovating my basement and/or buying a commercial property mixed-use to be exact. Would like to open a small business and have rental apartment/s above to help pay off 2nd mortgage.

Current Situation:

Primary Home = SFH VA LOAN 30YR/3.0 FIXED RATE. Bought two years ago for $255,000. Owe $190,000 now. Appraised for around $450,000.

Best VA Cash REFI Offer:

USAA offer 30YR/3.8 FIXED RATE. Based on $400,000 home value. I am only taking $100,000 cash at closing. New mortgage will be around $300,000. 

Worth it? They sent me paperwork already, but I have not signed yet. Also closing cost are around $15,000 it looks like. I am located in NYC.