Refinance at a higher rate for future investment downpayment?

[Matthew Mainey]

My wife and I recently purchased our 4th property in Denver.  It is a triplex 5 minutes east of downtown (RINO).  We added two bathrooms to two of the units and are planning to add a half bath to the unit that we currently reside in.  Once the last bath is completed, the property will be:

3200 square feet on a triple lot with 6 off-street parking spots.

1 - 3 bedroom 2 bath

1 - 2 bedroom 2 bath

1 - 2 bedroom 1.5 bath

Property appraised at the purchase price of 735k in early April, 2018. We are considering a refinance to pull out some of the cash (BRRR) and have estimated the property value to be ~900k based on the additional bathrooms. We currently have a 4.625% rate on a 589k note. We have a rate locked at 4.99% and plan to pull out $82k. Cost for the loan is below:

Loan Amount: $675,000

Total Closing Costs:  -6,193

Estimated total payoff:  -587,680

Cash to borrow at closing:  81,217

We have performed the BRRR strategy on one of our other multi-family units in the past, but we IMPROVED our rate from 5.0% to 4.125%.

As alternatives to a refinance, there are some opportunities for a second mortgage and HELOC, but they carry a higher rate (thought shorter term) and a higher payment due to a shorter loan term (5 - 10 years).

We would be using the cash for either a future property purchase down payment, or for building garages and an accessory dwelling unit on the property in question. We are on the fence with having to pay a .365% increase on the entire note vs. just doing a second mortgage or HELOC for the $80k. The additional cost of this refinance over the life of the loan is ~220k.

I welcome and appreciate any advice.