Depending on the bank they may require that you have held title for six months prior to the refi.

All in an effort to get you to pay $1,500 - $5,000 in non-refundable "due diligence" or "underwriting" fees.Any lender that charges anything prior to closing should be a red flag.   

I think you would be better suited using that money towards repairs to BUILD equity rather than PAY for it up front, also if it does need repairs, do em at the end when you want to sell , college kids don't necessarily need granite and stainless steel appliances quite yet :)Just need to run your numbers prior, discuss strategy, and let it rip :)Let me know if i can be of any help

One scary data point from the airline industry before and after 9/11:"In August 2001, the month just prior to the attacks, U.S. airlines boarded 56.3 million passengers for domestic service, a number that plummeted to just 30 million in September.

Sure, the prior decision was certainly based on cost, but the potential can of worms to make this location right could easily have snowballed into ripping out the wiring too, not just upgrading the location, and who knows where that wiring goes or what it feeds, a person could end up replacing all the wiring in the entire circuit, or even the building, by the time it was all said and done (extreme example I know - we both know that's more work that just running a couple wires). 

One unit needs complete gut and rehab which was not disclosed prior to contract. 

Even with a HML you do need to have savings for a down payment, closing costs, insurance and some of estimated rehab cost, at least enough to get to first draw, plus contingency.Probably best to save more prior to starting something. 

The lender explained since I was forced to move in the military, I could still get the owner occupied rate, if I write a letter saying I did live in the property prior to my move.  

I would confirm about the statement about utilities and if you put an offer in, have that done prior to closing OR have enough money held back at closing to cover those costs.

Post clear instructions there. label things like extinguisher.and i doubt you cannot handle the rare situation "at work".