You’re borrowing against the equity in your home, so the money is not income but rather loan proceeds that you’ll need to repay.The pros of a cash-out refinance for most investors include the ability to build their portfolio and scale their real estate investment business.The cons could be trading a lower interest rate for a higher one and increasing your loan-to-value (LTV) ratio.

If you want to move the property quickly and ensure income, seller financing seems more practical despite the tax trade-offs.

If you are a licensed contractor for instance and capable of major remodeling projects as your trade, this would be considered adding value to the property and would risk IRS action.Sounds like "improving" or "upgrading" the place is not allowed.

I'm in a good position now and don't want to trade a career that is OK for something I don't like. 

These loans that include future rehab will come in different flavors from current 7's to 12%'s in rates with different speeds to close, ease of access to the funds, different pricing and requirements to qualify.Typically the more Full Doc or tougher the qualifications are (like debt to income or DTI req's) the lower your rate/pricing so its a trade off.

As others have mentioned it is a trade off.  

He needs to be a manager, organizer, motivator, and educated in the trades and he has to give a you know what about the finished product of your job. 

They use our trade colors and trade designs.

You’re buying, trading, or selling a physical asset.

Until that happens, with either scenario, a way to increase your cash returns could be to buy EDV, it's a Vanguard exchange traded fund that holds 20 year and 30 year zero coupon US Treasuries, such that whenever the 10/20/30 year bond yield goes down, its value goes up.