I'd say that is a personal question but I would not do a cash out refi where the fees make up more than 10% of my cash out amount, UNLESS, you need that cash immediately for a new deal where you will make substantially more money than the money lost, or you are also reducing you APR to a point where the interest saved will make up the fees over time.Also I just did a cash out for 50K where the bank I worked with had a low income neighborhood special and closing costs were only $500 bucks (lender fees, and title fees) so might want to shop around and see if you have any local banks that do something similar.

If rehab is planned at 100k but is actually 150k you just reduced your profit.Id run worse case scenario.

Hopefully this will reduce the amount of leg work and credit checks for me.

On the other hand, also worried we won’t be keeping the property above water with rents reduced significantly.Still learning and know we will make mistakes along the way. 

I initially wanted to pick up some part time job to just have enough to get by but I want to give all my time and energy into just realty.

That means if the house was overpriced and didn't sell, the selling price could be reduced by my share and the money partner still gets their full share of the profit.

@Whitney Hutten Thank you for your comments, you've helped me to sort out where I'm going wrong and where I need to focus my energies.

Some sponsors treat regular distributions as return OF capital reducing the original equity and amount of pref over time.

The representative from Duke energy would not tell me the specifics about what the problem is with the current bill, so I can only assume the tenants have missed a payment. 

Kevin,Just based on the numbers you could take cash out of both properties and reduce both rates.