I run into this issue frequently where NJ investors are looking into out of state thinking it is cheaper, that's not always the case. 

Doss Docs are cheaper than Lightning Docs from Geraci and they can cater to junior lien positions and cross-collateralizations, too.

Downsize rent when you can and maybe even consider moving somewhere cheaper.

Also, in this case, it will probably be cheaper than renting and I will also enjoy all the long-term benefits of owning real estate. 

The larger ones are much cheaper per square foot but the rents for the 1,700 to 2500 sq ft cabins have come down as have their prices. 

The only reason to do a cashout refi is to replace expensive debt with cheaper debt or use the money to purchase more investments that make more money than the cashout refis debt service payments.

That way the government pays with cheaper dollars. 

Getting into a larger SFR to househack seems to always be cheaper than a MFR from the deals I've ran.

Where I live for the cost of doing so it is cheaper to buy new multi family 2-4 units and then earn 3X-4X the rents for the same cost.

Hopefully, it was based on their ability to successfully execute a transaction, and not just because they were cheaper than everyone else.