@Rangsey Chum These would be great questions for a mortgage broker, if you’re looking for traditional financing options.

Traditional banks I’ve spoken with will only give me a cash out refi based off the original loan amount and money I owe now.

If you are reporting this Income in the tax return, they would compare your financial with the tax return. 

I will keep that in mind when comparing the rates.

The lender doesn't want to see a dramatic drop off of overtime in the last 12 months compared to the previous 12 month period.

Do you have enough to refinance into a traditional loan and get your full VA eligibility back?

Rate is at 5.62% 30 year, but with all the traditional appraisal and associated fees. 

For the area I am in, I spoke with my realtor and are confident that the studio would rent for $900-$1100, and if I were to rent the actual house (in a year or so) comparable show it'd rent for $1800-$2000. 

If this is the case, based on how much it cost in the Bay Area to change locks using traditional/non-smart systems, that would be like $120-140/per door vs. a one-time install and then never really having to do it again.

15K is not a renovation, so, you need to make sure that you're comparing like to like