If you truly need to refinance, you may want to look into a bridge cash out loan and have the permit cost as the budget + any other rehab you still may need to do to get this fully permitted.

My main concern is the limited cash I have available for the down payment and renovation costs.

It lets you borrow against that equity to help finance a down payment or closing costs.

Maybe Alabama cost will flourish soon.

@Garrett BowserAgree with Wayne as it will increase his insurance and bond costs for having this project on the books along with the liability.I would guess 3-5% of project costs.

Demand in the area is definitely down, competition has increased, and values have gone down since we purchased it.

But that is in line.As mentioned, the cost of finding a new renter for $100 makes zero economic sense. 

Where is your competitive advantage in those areas?

So repair costs are $18,000.  

If so what's the cost per sqft?