If you have the cash to make a lump sum payment and are happy with your current loan terms, recasting could be a smart move to improve your financial flexibility.

These items have me slightly concerned and weighs on my decision, making me want to "take the money and run".Question: Would you sell, abandoning a 3.125% interest rate, $1000/mo cashflow (which I believe would be roughly halved if a loan were taken for the capital improvements to the larger property), to lock in the equity gains tax-free made since 2020?

Quote from @Johnny Lynum: If you had the chance to invest in your first property, would you choose a single-family home or a multifamily property?

Because the chances of successfully concluding a wholesale transaction when you lack experience, knowledge and capital are so infinitesimally small that you’d be better off playing the lottery.  

In the OFF-chance (not as common), you're looking to get into a DSCR loan...there are ways to get no origination or processing fee by originating your own loan (yes this is possible and you can do it in 39 states without a license).

From experience, I’d recommend getting pre-approved, improving your debt-to-income ratio if needed, and researching local assistance programs.

Leverage Local ResourcesEconomic Development Grants: Check with your city or county for grants or incentives aimed at affordable housing or community improvement projects.Local Banks or Credit Unions: They may be more flexible than larger financial institutions, especially if your project aligns with community needs.Partnership with Nonprofits: Collaborate with organizations interested in affordable housing or sustainable living.4.

Willing to customize to tenant desires FOR A PRICE. obviously, some of the above is accomplished by the particular property you purchased; some by repairs, maintenance and improvements, and some by ongoing service commitment.   

We added value by furnishing the property, added 2 decks (one for a solo stove, and one for a large hot tub), improved the gravel driveway, mulched the landscape, and added a lot of string lights.

I started my solo-shop last summer and looking for ways to improve!