If it's in your name you can look into the potential for a HELOC or potentially refinance to pull out some of the equity you've created, but you'll need to do the math to see if you're payments will increase based on the new loan terms.

As for as the appraisal right now the property is valued at 850k I’ll see what the new appraisal will come in at when I refinance and they make me get an appraisal.

@Shak F. you wont be able to do a cash-out refinance with a conventional loan, since they require 12 months.

That said, the right team on your side can make the permitting process and inspections far less painful.I’m curious... as you refine your plans, how do you see yourself balancing the home’s original character with these modern upgrades, and which element of the design do you think will win over the pickiest buyers? 

Should I refinance, I know I cannot do  HELOC because it is not my primary residence. 

This is correct, but that .5% is IN ADDITION to all the other closing costs associated with a refinance (Title/Escrow Fees, prepaids, and depending on the bank, Underwriting / processor costs) - so in reality it can be a little more expensive to refinance with IRRRLs.

Here's where I struggle to comprehend and make it make sense: So when I go to cash out refinance, the property is appraised at a higher value from market appreciation and rehab.

As soon as interest rates or your personal situation are favorable you can then refinance at any time and eliminate the hard money lender.

Share your comps with the appraiser during the refinance stage to help justify your ARV (After Repair Value).

To navigate this, consider options like keeping your current home as your primary residence while house hacking a multi-unit property, using the HELOC funds strategically before moving, or exploring alternatives like a bridge loan or cash-out refinance.