The price points do make it hard to cash flow even with the lower interest rate subject tos. 

I put in total $70K and it's worth $100K now.

Socal is tough to find investment properties that work.I have a great realtor in Sacramento that can find properties that cash flow.

You need to do a cost-benefit analysis to determine if it's worth it.  

:)  Is it still cash flowing after the refinance?  

Texas does have specific rules regarding home equity loans and cash-out refinancing (often referred to as "Texas Equity Section 50(a)(6)"), but these don’t prohibit homeowners from using funds for investment properties.

Would a cash out refi be under commercial terms since the property(s) are under LLC?

Despite wanting to handle it a few other ways I reached a small cash settlement with him to drop it.

The big stuff is gone and if anything does come available Mom and Pop know what it is worth. 

. $300sqft to build at least.If you have any sort of mortgage on the property you will need an attorney to handle the mountain of paperwork the bank will give you for a lien release. 10k+, also probably some nightmare terms to have to build and sell immediately and god knows what.At this point a year has passed and you have spent at least $60,000 cash, you're about to break ground on a structure that will cost you at the very least $400,000 to build, you are still 1 year away from cashing out because you have to now build a house.