Refinance and Rent or Flip?

[Mark Kurian]

Hi All,

I'm currently buying a property for about 300k (putting down 25% with an interest rate of about 5.3%). It's a 2 family and both units are currently rented out below market (at about 1,100 and 1,500). The mortgage appraisal came back at $400k. I'm trying to decide what the best options to do are. I can either A) keep the house the way it is, and raise the rents on the current tenants, B) Flip the house the way it is. C) Update one unit at a time and continue to rent D) Update one unit at a time and flip.

I believe I can technically refinance after 6 months since it's already appraised for more. This would obviously raise my monthly mortgage, but as long as its covered I'm thinking I can have my initial 25% down payment back and look for another property using that. Does this make sense or am I getting myself confused?