Rehab & 203k Question (Advice Needed)

[Jeremiah Ellard IV]

Hello BP Community, 

My name is Jeremiah and I'm a fairly new investor. I would like some additional input and guidance on a current project that I have. 

Here's the details:

1. I'm looking to build a garage conversion ADU. Thus far, permits are paid for and approved. So we are a little way into the process.

2. We are approved to finish the ADU via 203k process. However, once we started the process interest rates skyrocketed so we paused, to see if they will come down a bit. So that's the dilemma.

My question is... should we move forward with the 203k (and Refi) or should we continue to wait and complete the ADU via a different route?

Heres more information about our project for clarity:

Principal owed: 250k

ARV: 450-500 (ADU & Main House) 5/3 total

Rent: $2200 per month (3/2-ADU only)

Current % Rate: 4.125 (here's the sticky point!) if we refi now it'll be at the current market rates. 

Thanks for your input and suggestions! I've been rattling my brain about this for a while and may just hold off, considering the property is breaking even already (rent from the main house alone). We aren't in a rush to finish the ADU- but it would be nice to have (for our own use).