Minimum loan amount is $250k.

My girlfriend and I are looking to get into Multifamily real estate investing and have looked into the possibility of house hacking, although a good property for it seems to be tough but not impossible in this area.  

The current lender refuses to do a loan assumption. 

I have a great one in Kansas City for over 15 years that I've used multiple times (only auto loans however), but hoping to branch out locally as I begin my investor journey in Arizona. 

I’m weighing two options for our housing situation and would greatly appreciate your advice, given the complexities involved.1.Renovate and Buy Another Property•Invest to renovate our current home adding a bedroom to the house given our family outgrew the house.

With the upswing in the country's short-term and mid-term rental markets, a unique opportunity is presenting itself to house hackers during a time when it's harder to cash flow than it was a few years ago.

Can't you get a conventional loan?

If you're using a DSCR loan to purchase the home, most lenders use the lower of the lease agreement or 100% of the market rent from the appraisal form 1007 to determine the DSCR.

There are tons of loans out there that use just the projected or actual income from a property vs the payment of the property (DSCR loans). 

At the current scenario, without knowing anything about you or your properties I will recommend either to look at a loan from your assets using DSCR loan.