You will need to be at around 75%-80% loan to value in order to do the cash out refinance, depending on the loan program. 

The funny thing about this program is that home owners pretty much never are able to buy these properties as they rarely can go FHA.

Is their a better way or a program or something?

You could also look into using some sort of DP grants or first-time homebuyer programs, as for example, Bank of America runs a grant for using them, that can add up to about 18k towards downpayment and closing costs.

There are a number of programs offered by lenders which may be able to help with part or all of your ask.

Some of them have some great HELOC programs. 

The parameters of the loan program you use to refi will dictate how much cash you will be able to pull out. 

humidity is also a thing, it's common to see dehumidifiers in a lot of these older basements to keep the crumbling and dampness to a minimum.2.) read up on 4D and Section 8, so you're aware of what's involved when properties are participating in those programs.3.) st. paul calls their rental license a COO - certificate of occupancy; maintained by the fire dept. 

You should be able to find something similar for your state with a little web searching.You can drill down to the exact street and intersection, depending on where / when they placed the counting devices.For demographics, try http://www.city-data.com Both are free to use.

The Section 8 voucher program is money for the tenant to help with making their rent payments.