I understand I will need to pull a permit to add shower area in the third bathroom but would a permit be required for the three additional rooms, especially given I will not be adding any new sq ft to the property?

The next big hurdle: You'll need to basically perfectly match either the loan or loans you lend on to the amount you pulled out to make that theoretical 5% spread on the arbitrage. 

Once you evict them and are ready to rehab, you have various loan options to cover the renovations costs and pull out equity.4.

I’m trying to get a heloc or cash out refi on a primary residence duplex.l under FHA.I have great credit but modest incomeWife has bad credit with better income therefore I don’t believe we will qualify for heloc.Our plan was to get heloc to use as a down payment on another house hack or general investment property.So far our mortgage company said they could do the cash out refi which would raise our mortgage from $800 to $1200 (current rate is 3.62) and the rate would go to 6.6To pull out hopefully 30-35k maxMy concern is if I do the cash out.

I've reported it to MLS to have the listing permanently pulled as it's an erroneous/illegal listing. 

So I am hoping to pull the trigger on a fix and flip in the coming month or two so I can finally go from 0-1!

When Im getting into mid October to mid November....I typically recommend to my clients to pull the property off the market, and relist around Feb 15th for townhomes and single families, nd possibly as early as Jan 15th for condos.

Perfect BRRRRs, where you pull all your invested money back out at the refi, are very unlikely.

I pull all my copies , approved plans from the county , footer inspections , final inspections , AND I found a copy of the code from 2002 . 

@Nate Jenks - @Andrew Postell did a great job clarifying the big challenge you'd run into pulling cash out with such a low down payment.