Appraisal much higher than Purchase. What would you do?

[David Zheng]

I purchased a multi-unit for 400k at 20% down on a commercial loan. Appraisal comes back at 500k. I'm a buy and hold investor and I think there is still room to renovate and appraise it even higher.

What should I do? Pros and Cons of each option?

1. Renovate to force more appreciation, re appraise (but at the risk of getting a lower appraisal),  and try to refinance 6 months later?

2. Pull out a HELOC on the additional equity immediately to keep investing? how soon can I do this after I close? Do I need another appraisal for this as well in which I could potentially risk a lower appraisal?

trying to figure which will give me more money to work with.

Let me hear your thoughts! Thanks!