Did I do the right move? VA CASH OUT REFINANCE!

[Eric DeVito]

Hello all! I believe I took the best approach possible, but would like some insight as well. I have a SFH primary residence and have a 30 year fixed 3.0 rate/ VA LOAN. I bought the house for $255,000 two years ago and after some cosmetic updates my house is valued to be around $400,000-450,000 as per my realtor. I decided today to use USAA to do a VA cash out refinance as they had the best rate after calling a few lenders. It is a 30 year fixed 3.8 rate. I could have taken up to $160,000 in equity I believe they said, but I only opted for $100,000 as I feel that is enough for my goals. This leaves me with a mortgage now of $300,000. Closing is in two months. My end goal is to use this $100,000 to renovate my basement and finish it as it is a dungeon type basement lol. Also I am interested in purchasing a Mixed-Use property. Retail on bottom with apartments above. This is because I want to open a small business of mine and would like rental income to help pay off this secondary mortgage/property. The thing is I live in Staten Island and the only property in my budget is in the hood. The property is $250,000 and seller is really negotiable as property does need some work, but my realtor says it could be worth around $400.000 after some work too it. I could also go to New Jersey/Pennsylvania border and buy a property there as well. It is about 1 hour - 1.15 min drive from me. Wondering what is best?