Every time your credit gets pulled it a hard inquiry which hurts your credit.

Mind you, I had completed appraisals, credit pulls, and all other tasks that they required.

But you will still need to pull money from your duplex because they will require $175K for the down.

The property is rented out for $3,200 per month, while my mortgage is $2,100, and the HOA fee is $268.I explored the option of taking out a second mortgage.

Licensing fees, CE classes, E&O insurance, general business liability insurance, sentrilock/suprakey fees, board association, etcc.

Perfect BRRRRs, where you pull all your invested money back out at the refi, are very unlikely.

At the end of the day you're only going to be as successful as that team allows you to be so I would definitely advise doing a deep dive and  visiting, if possible, who you'd be investing with and where before pulling the trigger. 

I understand I will need to pull a permit to add shower area in the third bathroom but would a permit be required for the three additional rooms, especially given I will not be adding any new sq ft to the property?

I have VA disability to waive the funding fee and don't pay property taxes for the property I'm residing in.  

@Eric Lowe Prior to pulling the trigger on a Cost Seg study, you should evaluate 2 things:1 - How much net additional deprecation tax deductions a Cost Seg study would provide: Best way to get this is by requesting a free feasibility analysis from a Cost Seg provider.