About to Refinance but Bank terms seem weird

[Marquin B.]

Hi BP Community,

Just looking for some advice as it relates to refinancing. We live in our first property which was pretty much a multi family house hack (3 units) and eventually sold one of the units. The bank is recommending that we come in and refinance, except the option of a construction loan is no longer an option at this time. So we found a repossessed triplex for 380k with about 70 in upgrades to improve the property (450k total).

Our current property is appraised at $730k with a balance of 248k and can pull out about 300-320k out with a refi. I'm having a hard time with the idea of not pulling the cash out first because the second mortgage isn't giving us any cash to walk away with outside of the 450k mortgage. Am I missing something here? Shouldn't they take the down payment from the equity and make some of the rest of the equity readily available? The second property has more than 25 in equity at purchase. Please help me navigate I would hate to make a huge mistake. Thanks in advance