Newbie questions on a new seller financed investment.

[Victor Williams]

Hey everyone. Hope you are doing well. So I am in need of some advice on this day.

Info: Multi Family Property; 2x: 2 Bed 1 Bath. 1x studio. 1x 2 bed 2 Bath.

CMV: ~80,000-100,000 ARV: 120,000-175,000(Not exactly sure how to do these but i did comparisons/ looked at an old appraisal).

Purchase price; $50000 USD. $6000 down payment. 500 per month. 5 year term balloon(flat fee).

Worst Case Scenario (hypothetical obv worst case is 0) rental income: $1200.

Use: Hold long term as a rental property.

Question: Should I refinance and take cash out with an FHA 30 year mortgage(live in studio apt)?

Other: I just dont want to cash out refi if it would end up costing me more. I have shopped around and its seems my mortgage payment would be around the same amount(500-600). The obvious thing is that would mean I would owe 80-100k instead of 40k. I of course would get 40-50k cash out to renovate/reinvest in other property I have but I am not sure if this would be the best option and do not know how to compare the two overtime(evaluate my options. Thank you for your time .

Also after the 1 year required to live at the property(FHA) I plan on renting the studio out as well. In reality the property should bring in 2k a month at least after I do the repairs. The thing is in order to do the repairs I either cash out refi or just wait and save up "my own money" to do the repairs. I am leaning towards the cash out refi option but wanted to get other opinions.

Thank you for time, hope everything is well with you.