Refinance for lower mortgage payment and cash out for capital

[Account Closed]

Hi everyone, this is my first post so I apologize in advice if I'm making a mistake. I am new to investing in real estate and upon researching, I found this forum very helpful in learning insights. However, I have some questions that I would really appreciate to get feedback on.

I currently own a multi-family home in New York. The house is currently a two family, R4 zoning and in need of a complete renovation. I currently have a high mortgage payment, which is about $3080 per month with 20 years remaining. The remaining balance is about $355,000. Now as I said, I'm quite new to this so I'm trying to play my options right and see what the best move will be. Refinancing for $355,000 can bring my payment down to $2000.  Now if I refinance it for $500,000 which gives me capital to renovate I am looking at about a $2600 payment. The upside about renovating is that, both units will be new and there will be rent-able parking spots for 4 cars. Rent in this neighborhood for a 2 bedroom goes for at the bare minimum $2,000 (can get $2000 to $2400). I believe this may be a good option but I would really appreciate to get feedback/advice on this and maybe if there are other ways to go about. Thank you for your time.