The biggest hurdle was convincing the appraiser that I had added enough value to the property to do the cash out portion of the refinance. 

New windows, kitchen, basement bath and adding a storage room/pantry in the basement.

Is there any danger in having someone live there and not formally added them to the lease?

Doing a cash out refi really only makes sense if you’ve either significantly paid down the mortgage, or significantly added value to the property.

I see the following adding to a potential downturn.

Your ex-wife has no interest and the Bank will most likely have your new Wife added to the deed and join on the mortgage.

. -- Some members of the Tulsa BP community are currently contributing REI resource recommendations to the following Google dos spreadsheet:https://docs.google.com/spreadsheets/d/1eW2waQGNxc...Feel free to add your own recommendations for contractors, agents, lenders, etc. if you have them. 

Google step 👆  basis.

Unfortunately, the settlement wasn't the only problem with property (voids beneath slab, issues with plumbing, "interesting" repair techniques, and a whole of lot of other things that added up to a "no" for me at the price and my current experience level). 

Doing some google-in, and they are not exactly rated top notch.