First BRRRR Property

[Jeffery Barnes]

Hello! Closing on a 3,000sqft home in the city of Apache Junction, AZ. It has 1500sqft main house and a 1500sqft walk out basement below. Whole house needs updating and our end goal is short term rentals for both main and basement house after reno, with the possibility of adding a small duplex dwelling unit on the property. This will be our first BRRRR and would like some info on the entire process. Purchase price was $655, we estimate based on comps we could get it up to $850 at the lowest after completing plans. How will it look if we get it reappraised for $850 and pull the equity out? Will we now have a loan amount of $850 in turn raising our mortgage? We're mainly looking for guidance on how pulling the equity will factor into the situation.