Your biggest problems here are going to be how to properly qualify someone, what to do if someone stops paying, footing the bill if you have a big repair item, finding quality and reasonable vendors/contractors to fix things, and keeping track of payments.If this isn't you, give me some more context of where you're at and I can give some better insights. 

I did an FHA 203K loan and it was a pain but it worked out and I built the necessary equity to BRRRR.

Home built in 2005. 

It was built as an office building in 1888.

We typically estimate standard costs for these items but get them done much cheaper with our own crew.

Hold it for few years and then sell it or built a second/vacation home. which area would you recommend and why?

So I'm guessing thats the item. 

Here are my thoughts about your decision to refinance.Process:Understand your current loan terms.Check your credit score.Compare offers from different lenders.Get your property appraised.Submit your application and go through closing.Considerations:Current interest rates vs. your existing rate.Amount of equity built in one year.Closing costs and fees.Your long-term financial goals.It's a complex decision, so consulting a financial advisor or mortgage specialist might be helpful.

My CPA instructed me to list my repairs as CAPEX or repair items , furnishings were supplies for the rental. 

Bank owned landlord built them specific for tenant rentals.