This could lower your resale value. 

Has anyone found a way to refinance and get cash out for a rate better than 7%?

Right now we're inquiring with our insurance provider to validate proper coverage, checking with our rental license if it covers uses like this, and working through what a lease would look like. 

Here are a few suggestions on how you can maximize the wealth of information available: Check out the blogs and podcasts, or take advantage of the search feature (magnifying glass).

Some people will do this with one building, then after a year go out and repeat the process with another property.

(c) Do any of you have some specific market considerations I should take into account OR that I should be researching (high taxes, pertinent rent laws, etc.)?

This coming weekend we were thinking of come out and checking the neighborhoods of few zips where there were houses we liked on MLS.

Check out this recent thread on LLC’s, it’s pretty eye-opening that of all the very experienced investors on here, with centuries of investing experience combined, the consensus was that LLC’s are not needed for most investors:  https://www.biggerpockets.com/forums/926/ Of course gurus will tell you that you need one before you even have a single property, because it makes them sound smart.

Hello,I'm a new out of state investor.

Check out Taskrabbit, or Thumbtack.