Reverse BRRRR (Or something like it)

[Zach McLean]

Here's my situation:

Bought a home in 2017 

Purchase price: $440,000

Remaining Loan Amount: $330,000

Current Market Value: ~$550,000

Closed on a new primary residence at the end of September (2020) that needs work.  Our plan is to rent out our first home.

I think I may have shot myself in the foot by not refinancing with a cash-out on my first house before closing on the second.  My plan now is to still try to refi with a cash-out to cover some of the construction costs on the new house but will likely have a slightly higher rate on the refi since it'll technically be on an investement property.  Am I overthinking this?  Curious what you pros would do in my situation?   Thanks