I would be doing this to be able to rent it out in the future at a higher rental rate. 

Technically speaking, to develop with a higher density, then its an obvious yes that rezoning will be required.  

Reinvest in Higher-Yield Opportunities: The cash from the refinance can be redeployed into other investments.

Many traveling professionals look for rentals under $2,400/month, though sometimes they can go higher if they are part of a group.Let me know if you need any help—I'd be happy to share everything I've learned!

STR offers higher income potential, flexibility, and tax deductions but is subject to seasonal demand.

When there's tenants already occupying the property, there's often times different leases that were signed among the tenants.Additionally, renting by room usually sees higher tenant turnover which in turn causes more work for the PM.Other challenges to consider:- Disputes/conflicts among tenants (different personalities if a tenant doesn't know the others prior)- Occupancy limits- Splitting utilities (what if someone uses more water?)

.- cash out refi loans have higher rate than if cash out was not occurring.  

Higher down payments, adjustable rates, but it would allow you to leverage instead of paying all cash.

Are you thinking this new cycle of higher rates is at its peak and we are going to head back to the 3%-4% range?

If you, your lender, or agent can pull up higher comps, there may be a way for you to negotiate a seller's concession and use it to buy down the interest rate.