Having money tied up or subject to penalty/restrictions if moved around is not worth any minimal gain it might see in the short term (for my purposes).

I will continue in my current W2 job for at least two more years, and that job ties to a separate 401k. 

@Jessica Huynh the better question is why are you looking to tie up both of your FHA loans with just one property?!

To really cut to the chase, "good debt" is debt that makes you money, and "bad debt" is debt that doesn't (when you buy material things that just sit there).  

If you plan to use a loan for the rehab portion, it would likely need to be a personal loan and not tied to this specific house. -6 months is pretty standard for seasoning for a cash out refinance.

How is that money going to "escape" from being tied up in that investment and find its way back into your pocket? 

Anyway, I was working in one of the upstairs bedrooms where I had identified some water damage and so I begin to cut away the paneling under the window and when I pulled it back, HELLO, there was an active yellow jacket nest that was about the size of a Cantaloupe Melon.

They get stinky mildew between the tracks, they get stinky black mildew outside the tracks and frames, they leak and damage the floors, the glass is hard to keep clean and I personally had a friend who slipped in a shower, fell through a glass door, cot cut bad, passed out and bled to death. 

My girlfriend and mom seem to think i will be ruining the space if i cut it up.

That all ties in to your financial status and what else you might want to do with that money.