Duplex in Renton WA - need advice on strategy moving forward

[Pete Perez]

I bought the duplex back in 2017 with my now ex-wife. I didn't have any equity when we split up, the divorce left me $18k in the hole, and I was utterly defeated about the situation. I have been occupying one unit while renting out the other ever since. I have since been able to get myself together and paid off the debt, and luckily the market has appreciated enough to where I have a lot of equity. I am trying to find the best strategy for me moving forward. 

I've put $15k of my own money into improvements already. I can either finish the rehab and sell it, or rent it out. I don't have the money to rehab it, so I am planning on a cash out refi at either 60% LTV or 75% LTV to finish the rehab, and put some cash in my pocket. The numbers are listed below.

My goals are still ambiguous to me. Long term I want cash flow, but I know that its a lot easier to make money if you already some. My thought is that if I go with Scenario 2 I can a property that cash flows, $185k in equity (day 1), and I can walk away with $60k in pocket after the rehab (if I spend the full amount). 

What am I missing here? Is there a benefit to leaving 40% equity in a property that I don't see? Does my thinking make sense to more seasoned investors? Don't be afraid to poke holes in this it will only help me moving forward. 

Thank you!