Hard $ can eat up your profit very quick so as its already been stated, make sure you have all your ducks in a row before you pull the trigger.

Even if you keep the property, you could pull cash back out through refinance.

Should I try to make some of the improvements (what I can afford) in the mean time or pay off the 2nd mortgage and pull out that equity without having to do another appraisal?

Well it didn't come in that high. if it comes in at 255k you would be able to pull 25kish and have to pay all those closing costs.  

You will pull the permit as the homeowner.

Residential lenders require a 6 month seasoning period before you can pull out anything more than your initial investment ($60k). 

I thought i was stuck until October, but now i am wondering i could turn it into a BRRRR property, refinance the house and pull out some cash to try to purchase again. 

I would love to use this the equity property to leverage us getting more properties and starting the method.However, when we reached out to our mortgage broker, he said we’d onky be able to pull out about $28,000 and that our rate would increase drastically (currently at 4.2 on a 30 year fixed).

We expect to close next week.In between I signed a contract for another property, where the seller is the mortgage broker (not the one for the first property) (mmm... may be I should not have done that).The problem is that when I told mortgage broker 1 that I signed a contract for another property and broker 2 pulled the credit he got upset (may be rightfully) because now we will have to disclose that new contract and explain we will be having new debt.

@Anthony Kondorif you can pull it off write a book on it.The only way we got an out of state bank to back off was to take pics of the roof leaks etc etc.