So I think I am ready to pull the trigger!

Pull the trigger.

I'm considering taking better use of that equity build up vs. letting it sit in the property but I already have ample cash on hand.I'm a little gun shy about pulling the trigger on the cash-out refi simply because, I don't need the cash, I hate paying closing costs, and I like to see the loans go down - not up. 

If it makes money today pull the trigger. 

I'm assuming you handled everything prior to this point in compliance with fair housing. 

Check with your broker to be sure you're educated on compliance...

One thing to consider is if you can cover your PITI even if you have no renters before pulling the trigger.    

Many factors go into determining the feasibility of conversion, such as; FAR (floor area ratio), off street parking, compliance with fire standards and so forth.  

Obviously even listed guests can cause a ruckus and perhaps this policy will help those 73% with general no-party rules have some better compliance and/or restitution for any fines from disruptive guests. 

Seasoned contractors have a full working knowledge and understand which building codes are applicable (or it is their responsibility to clarify which codes apply) and fully understand it is expected to build everything in compliance, you do not need to spell it out.