Doing a cash-out refi now might give you a pile of cash now to buy the next property AND reduce your monthly payments.

My main concern with house hacking is our income will be reduced quiet a bit and we won’t be able to save as much for the next property.

I am also new to real estate investing, and would also love to understand what business entity should I create to start investing in real estate one that reduces legal liability and also helps save taxes. 

@Greg Todrank I'm not trying to harp on you, but I do want to stress the importance of improving your processes.

House hacking - renting out a portion of your primary residence to cover part of, all, or more than your mortgage payment - is an excellent strategy for investors of all experience levels to reduce or even eliminate their housing expenses and begin to generate cash flow right where they live.

Tenants are more likely to stay for the long term in a single family, reducing turnover costs.I still prefer apartment complexes because of the economies of scale.

Also, to help to reduce the noise from above make sure you have carpet and thick padding. 

This isn't only to reduce expenses, but also because they have more "pride of occupancy".

Get that in writing that the company is aware of it and that there is no exclusions that would reduce your coverage2.

ValuePenguin is a good source for the relative cost of insurance by state.I want to stress again that it is CRITICAL that you choose a location where pre-COVID appreciation is greater than the current inflation rate.