As for the mechanics of all this, if you’re increasing the equity in the property with construction, the purpose of the refinance is to payoff the debt you took on to originally acquire and renovate the property (HML/HELOC).

@Sariel FuCan’t beat Metro Detroit(my rental portfolio is here)Purchase: $80k-$130kRent: $1200-$1500ROI: 10-14%Cash flow: $250-$350/doorAppreciation: Double digit (for past 10 years, will gladly send data)Location: C+, B- (suburbs and certain markets)We have over a dozen Fortune 500 companies just in Metro Detroit with huge Healthcare, Auto, mortgage, Amazon fulfillment, and more jobs.The bad reputation comes from OOS investors wanting $20k D market properties.

Do not pay off the loan with cash.You can sell and take the equity.You can refinance with bank statement or DSCR but rate will increase and not cash flow as well as with your existing loan at say 4.You can let the divorce finalize and just auto pay as agreed.

I'm planning to house hack.I have 20,000 in a savings 3,000 in credit card debt3500 in student loan debt3,000 on an auto loanThanks in advance for any feedback!

Metro Detroit (my rental portfolio is here)Purchase: $80k-$130kRent: $1200-$1500ROI: 10-14%Cash flow: $250-$350/doorAppreciation: Double digit (for past 10 years, will gladly send data)Location: C+, B- (suburbs and certain markets)We have over a dozen Fortune 500 companies just in Metro Detroit with huge Healthcare, Auto, mortgage, Amazon fulfillment, and more jobs.The bad reputation comes from OOS investors wanting $20k D market properties.

The garden unit was in poor cosmetic shape - old carpet, bathroom outdated but mechanicals were good - all copper and PVC, a panel in each unit. 200 amp service from alley.

@Eric Jones if you have your Home & Auto packaged up, then it is very easy for your agent to give you an Umbrella quote.If you have different carriers for your Home, Auto and Rental, it can be a slightly longer process as you may need to find a 4th carrier to provide the Umbrella quote.Additionally, you can have the Umbrella go over all of the policies, or just the rental. 

Credit Karma is usually accurate for checking your FICO 8 score, but real estate and auto lenders will often check your FICO 5 score, which is similar but less forgiving of certain missed payments. 

Has new roof and all new mechanicals.

I work in auto industry but want to do something else on the side that can generate some cashflow that also combines my engineering profession with my real estate investment space.