refinance question Hollywood FL

[Ricardo A Perez]

Hello BP family, 

i currently live in my primary residence which i purchased in 2014 the home is a registered as a 3 bed 2 bath with many updates new roof in 2016, new A/C unit in 2018, new windows in 2019, repainted the exterior and new flooring in 2020. i currently owe $154,000.00 on current mortgage. Running some compatibles it should appraise between $265,000 and $285,000. i am looking to lower my interest rate get rid of my PMI and pull out around $50,000 to begin my investing journey....... it sounds great right ?? my only concern is back in 2016 i converted the master bed room and bathroom in to a studio (not permitted) with its own entrance and kitchen i sealed off the entrance to the main house and currently my parents live there paying me $500.00 a month i am worried that the studio will one hurt my appraisal (cant find any comps) so not sure what it will appraise at in its current state and second will the lenders have any issue's refinancing the home with the illegal studio ??? please any advise will help thank you..................