Unfortunately, you must refinance the property completely with a new mortgage in order to pull equity out (or pursue a line of credit with a local bank). 

Its why I have been able to rebound with bank loans for my new construction .. and of course back to work funding fix and flippers but just a smaller version and much more particular thats why I would never fund anything in most parts of Jackson every again.

The other reason why you would choose option 2 is that no investor would ever buy #1 and the bank might have trouble financing a deal where the revenue can be iffy.  

A closing attorney almost just fell victim to Justin and was able to reach the bank in time recalling the wire before losing his money, which then led the bank to contacting me and now maybe the arrest.More charges are being filed against him since his bank has stepped in, law enforcement and maybe now the FBI are on it. 

Just called one of the banks and they require a business plan for a multifamily, is that typical for a lender?

New Garage door on detached 2 car garage.My mortgage company is Citizens Bank and from looking at their rules for PMI cancelation(per google AI) they are:"Citizens Bank will automatically cancel private mortgage insurance (PMI) when your loan-to-value (LTV) ratio reaches 78%.

What is this exemption for "Banking" ?   

They'll go see a realtor with the fantasy that they'll get full retail and potentially wind up losing it to the bank, at which point it poses the risk of short sale, which may be worse than a foreclosure.

I work for Northpointe bank.  

How do you effectively determine this and how do you propose to the bank to support your rehab costs (again guessing this has to come out of your pocket?)