@Devon Shives,Your situation has a lot of potential, but here’s a thought: A cash-out refi could work if you’re confident you can use the $30-35k effectively for your next property, but the higher rate and payment might indeed limit your borrowing power for another mortgage.Consider these alternatives:1.

Is there a housing shortage or is there really a problem with the BARRIERS caused by productivity, land use, zoning and mandates that limits construction?  

Limited partners usually cannot coattail REP status.

We just discovered a crack in the concrete slab foundation that is a borderline major problem:- It is a vertical crack about 1/8 inch wide that is at least 9ft long, which is causing a 3/4 inch drop in the flooring and some evidence of old (luckily) limited moisture and termite intrusion. - BUT, it also appears old and probably a symptom of the original house settling.

You are wise to limit your scope to a particular type of company.I have been in the industry for the past two decades, and from my years in the business, I can recommend a couple of other companies outside of my family. 

The fact that they don't have critical thinking skills and limited income/saving, makes them desperate and easy target.

The only way that works is if they have fully connected utilities and it is sitting on some kind of foundation and not on a trailer.Some folks think they are cool, but you really limit yourself on demographics.

Keep your chin up and try to limit contact with your lawyer to dealing with actual issues with opposing counsel.

Or should I consider withdrawing smaller amounts, like $100k?

By way of example, a lender may charge retainage, only release soft costs upon C/O, may limit loans to a set number of draws or only allow draws once a certain dollar amount of work has been completed.