Cash out refi at 75% or Refi at 80% (not cash out)

[MIlton Monzon]

Good Afternoon BP team,

I have a big decision to make in the near future for one of my current rehabs.  I am going to get some recommendations with the current rate trends/ potential turn in the future. I have a 4 plex that I purchased at 173k with 1 tenant in place and now has 3 tenants in place with 3 of 4 remodeled units and 4th one finishing up this month.  Work after being scammed by a contractor (following all the due diligence steps i could have) was about 90k.

This property cash flows a lot right now with just the 3 of 4 tenants. Once fully done will most likely appraise north of 400k considering other comps. So the options here are:

1) should I do a cash out refi with current trends but be stuck with a high interest rate since it's an investment property and under an LLC (with buy down I'm looking at 7.5%). I would be able to pull 75% of the appraised value and get all my money back and have approx 40-50k more to reinvest. However cash flow would still be there but probably below 1000$ after all expenses and PMI. Cash out would be about 300k.

2) should I do a straight refi (currently in a hard money loan at 9%) at 80% with no cash taken out and let the property continue to bring in 2500-3000 a month after expenses? Still would be at about 7-8% interest rate after buy down and with 700+ credit score. However this PMI will only be with a balance of 195k since HML put up some of the rehab costs.

Concerned of cash out with high interest rate and potentially being able to do it in the next 3-10 years with a smaller interest rate in the future. Also concerned of leaving so much equity in place during a potential opportunity to stay in the game while others are away.

I appreciate any feedback and any of you that read my entire post.

Very Respectfully,

Milton