My income fluctuates do to my freelance work.I have an amazing credit score 799I tried to get a line of credit and got rejected from my bank.I now have an offer to refinance and get cash out for a total of $375K loan at 4.5% for 30 years (That gives me a bit more then $175K out)My plan was to keep my mortgage as is rent my place out to cover it and get a new multi unit to live in and rent.

ETA: my metal roof is 25 years old now and my credit has now paid for the original install. 

Furthermore, with private investor money on the line, even in the event of a loss, I personally make sure my investors are paid, so BK is out of the question for me and for others, it ruins their track record, their credibility, and their credit score and history.I have never seen a contractor mistake put him or her out of business.

Sometimes I get credited for the option fee at closing or not.

I was thinking of either selling it or taking a line of credit on it to buy more properties and still rent it out without any cash flow but I will still have the property.

The lender is who really drives up the price.You also get a credit for property tax at closing.

I have the 3.5% down as well as the credit score but am being declined due to high DTI.

If you have great credit and good income, you could borrow money on a personal loan, remodel the whole building to increase value, and then refinance to pay off the personal loan.

(As I am in the process of repairing minor credit repair). 

I have not typically seen banks issue out lines of credit to new land lords because of the risks involved, especially at low rates.